The Result of a Hypothesis Is Described in Terms of the Probability

question 51

Essay

The result of a hypothesis is described in terms of the probability of obtaining a particular sample. Use the given contextto formulate the null and alternative hypotheses. Discuss whether the sample provides evidence for rejecting the nullhypothesis.
-A company claims that it pays women the same as men for comparable work. The union
decides to investigate this claim. The mean monthly salary for men in entry level positions
is $2250. Amongst a random sample of 60 female employees in similar positions , the
mean monthly salary was $2210.
Assuming that the mean salary for all female employees in entry level positions is $2250,
the probability of selecting a sample in which the mean monthly salary is $2210 or less is
0.06.

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Definitions:

Annual Dividend

The total amount of dividend payments a company distributes to its shareholders over the course of a year.

Rate of Return

The upward or downward movement in an investment's worth over an agreed-upon duration, quantified as a percentage of the investment's original price.

Shares

Units of ownership interest in a corporation or financial asset that provide a proportionate claim on the company's profits and assets.

Stock Listing

The process of adding a company's shares on a public stock exchange, allowing them to be bought and sold by investors.