In the Past, the Average Age of Employees of a Large

question 60

Essay

In the past, the average age of employees of a large corporation has been 40 years.Recently, the company has been hiring older individuals.In order to determine whether there has been an increase in the average age of all the employees, a sample of 64 employees was selected.The average age in the sample was 45 years with a standard deviation of 16 years.Let α = .05.
a.
State the null and the alternative hypotheses.
b.
Compute the test statistic.
c.
Using the p-value approach, test to determine whether or not the mean age of all employees is significantly more than 40 years.

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Definitions:

Alternative Hypothesis

In statistical testing, it is the hypothesis that proposes a difference or effect contrary to the null hypothesis.

Standard Error

A statistical measure that describes the accuracy with which a sample represents a population, specifically the variability of sampling distributions.

Test Statistic

A calculated value used to make a decision regarding a hypothesis test; it measures the degree of agreement between a sample data and the null hypothesis.

Sample Proportion

The ratio of members in a statistical sample that have a particular attribute to the total number of members in the sample.