A University Wants to Know If the Average Salary of Its

question 58

Essay

A university wants to know if the average salary of its graduates has increased since 2010.The average salary of graduates prior to 2010 was $48,000.Since 2010,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 critical value at a 5% significance level.
c.At the 5% significance level,can you conclude that salaries have increased? Explain.

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Definitions:

Screening

The process of testing or examining individuals for the presence of diseases or conditions before symptoms are apparent.

Physical Therapy

A branch of rehabilitative healthcare that uses specially designed exercises and equipment to help patients regain or improve their physical abilities.

Dangerous Side Effects

Adverse reactions to drugs or treatments that can pose serious health risks or complications to the patient.

Medications

Substances used to diagnose, treat, or prevent illness and improve health.