A University Wants to Know If the Average Salary of Its

question 27

Essay

A university wants to know if the average salary of its graduates has increased since 2015. The average salary of graduates prior to 2015 was $48,000. Since 2015, the university surveyed 256 graduates and found an average salary of $48,750. Assume that the standard deviation of all graduates' salaries is $7,000.
A) Specify the null and alternative hypotheses to determine whether the average salary of graduates has increased.
B) Calculate the value of the test statistic and the p-value at a 5% significance level.
C) At the 5% significance level, can you conclude that salaries have increased? Explain.

• A) Specify the null and alternative hypotheses to determine whether the average salary of graduates has increased.
• B) Calculate the value of the test statistic and the p-value at a 5% significance level.
• C) At the 5% significance level, can you conclude that salaries have increased? Explain.

---

Definitions:

Competitive Advantage

The conditions that allow a company or country to produce goods or services more effectively than competitors.

Minimising Costs

Strategies and practices implemented to reduce expenses and manage financial resources efficiently within an organisation.

Portfolio Planning

A strategic process that involves making investment decisions to balance risk against performance, often in the context of project or product portfolios.

Corporate-Level Strategy

The top-level strategic planning and decision-making that guides the overall direction, scope, and ambitions of a corporation.