The Dean of a Business School Claims That the Average

question 72

Multiple Choice

The dean of a business school claims that the average starting salary of its graduates is more than $50,000. It is known that the population standard deviation is $10,000. Sample data on the starting salaries of 36 randomly selected recent graduates yielded a mean of $62,000. What is the value of the sample test statistic?

• A) z = 7.2
• B) t = 5.04
• C) z = 2.7
• D) z = 5.6

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Definitions:

Prediction Interval

A type of interval estimate of a predicted value of a variable based on a particular set of data, encompassing the uncertainty of the prediction.

Expected Value

The long-run average value of repetitions of the experiment it represents, in probability and statistics.

Error

The difference between a measured or calculated value and its true value; often used in statistics and scientific experiments.

Confidence Interval Estimate

A range of values, derived from sample data, that is likely to contain the value of an unknown population parameter.