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Question 6 (1.25 points)
A researcher wants to test if the mean annual salary of all lawyers in a city is
different from $110,000. A random sample of 53 lawyers selected from the city
reveals a mean annual salary of $114,000. Assume that o = $17,000, and that the
test is to be made at the 1% significance level.
What is the value of the test statistic, z, rounded to three decimal places?
A

Respuesta :

Answer:

Test statistic Z= 1.713

The calculated Z- value =  1.7130 < 2.576 at 0.01 level of significance

Null hypothesis is accepted

There is no difference between the  mean annual salary of all lawyers in a city is  different from $110,000

Step-by-step explanation:

Step(i):-

A researcher wants to test if the mean annual salary of all lawyers in a city is

different from $110,000

Mean of the Population  μ = $110,000

Sample size 'n' = 53

Mean of the sample x⁻ = $114,000.

standard deviation of the Population = $17,000,

Level of significance = 0.01

Null hypothesis :

There is no difference between the  mean annual salary of all lawyers in a city is  different from $110,000

H₀:  x⁻ =  μ

Alternative Hypothesis :  x⁻ ≠  μ

Step(ii):-

Test statistic

                 [tex]Z = \frac{x^{-}-mean }{\frac{S.D}{\sqrt{n} } }[/tex]

                 [tex]Z = \frac{114000-110000}{\frac{17000}{\sqrt{53} } }[/tex]

                Z =  1.7130

Tabulated value Z = 2.576 at 0.01 level of significance

The calculated Z- value =  1.7130 < 2.576 at 0.01 level of significance

Null hypothesis is accepted

There is no difference between the  mean annual salary of all lawyers in a city is  different from $110,000