The Director of a State Agency Believes That the Average

question 142

Multiple Choice

The director of a state agency believes that the average starting salary for clerical employees in the state is less than $30,000 per year. To test her hypothesis, she has collected a simple random sample of 100 starting clerical salaries from across the state and found that the sample mean is $29,750. Assuming the population standard deviation is known to be $2,500 and the significance level for the test is to be 0.05, what is the critical value (stated in dollars) ?

• A) For alpha = .05 and a one tailed, lower tail test, the critical value is z = -1.645. Solving for the critical x- bar: -1.645 = (x-bar - 30,000)/250, x-bar = $29,588.75
• B) For alpha = .05 and a one tailed, lower tail test, the critical value is z = -1.96. Solving for the critical x- bar: -1.96 = (x-bar - 30,000)/250, x-bar = $34,211.14
• C) For alpha = .05 and a one tailed, lower tail test, the critical value is z = -1.645. Solving for the critical x- bar: -1.645 = (x-bar - 30,000)/250, x-bar = $34,211.14
• D) For alpha = .05 and a one tailed, lower tail test, the critical value is z = -1.96. Solving for the critical x- bar: -1.96 = (x-bar - 30,000)/250, x-bar = $30,411.25

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Definitions:

Unit Product Cost

The total cost, including materials, labor, and overhead, divided by the number of units produced.

Year 2

Refers to the second year of a time-related context or sequence, not a standalone key term without additional context.

Contribution Margin

The amount of revenue remaining after subtracting variable costs, indicating how much contributes towards covering fixed costs and generating profit.

Per Unit

Refers to expressing costs, revenues, or other financial metrics on a per-unit basis to provide a standardized measure.