Perform the Indicated Sign Test $$\alpha = 0.05 .$$

question 62

Essay

Perform the indicated sign test. Be sure to do the following: Identify the claim mathematically and state the null and
alternative hypotheses. Determine the critical value and find the test statistic. Decide whether to reject or fail to reject
the null hypothesis and interpret the decision in the context of the original claim.
-A government agency claims that the median hourly wages for workers at fast food restaurants in the western
U.S. is $6.35. In a random sample of 100 workers, 68 were paid less than $6.35, 10 were paid
$6.35, and the rest more than $6.35. Test the governmentʹs claim. Use $$\alpha = 0.05 .$$

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Definitions:

Government Bonds

Securities issued by a government to raise funds from the public, promising to pay back with interest at a future date.

Excess Supply

A situation where the quantity of a good or service that is available surpasses the quantity demanded at a current price, often leading to a price decrease.

Value of Money

The purchasing power of money, which can be affected by inflation and economic conditions.

Price Fell

A situation where the market price of a good or service decreases.