Five Years Ago,the Average Starting Salary of a New College

question 96

Multiple Choice

Five years ago,the average starting salary of a new college graduate with a major in marketing was $34,000.A random sample of 10 graduates from this year's graduating class of a local university yielded the following starting salaries in thousands of dollars: 28,36,25,37,35,24,38,45,39,36.The local university wants to determine if the median starting salary for marketing graduates has increased in the last five years.
Assume that the population of starting salaries in marketing is not normally distributed.Using α = .05,can we conclude that the starting salaries increased in the last five years?

• A)Reject the null hypothesis.
• B)Fail to reject the null hypothesis.

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Definitions:

Salary Contribution

The portion of an individual's salary that is allocated towards investment, savings, or retirement plans, often in a structured or mandated manner.

403b Plan

A tax-advantaged retirement savings plan available to employees of educational institutions and certain non-profit organizations.

Salary Reduction

A decrease in the amount of an employee's pay before taxes as agreed upon by the employer and employee, often in exchange for some benefit such as enhanced retirement contributions.

Tax Bracket

Categories that determine the rate at which income is taxed based on income levels.