/*! This file is auto-generated */ .wp-block-button__link{color:#fff;background-color:#32373c;border-radius:9999px;box-shadow:none;text-decoration:none;padding:calc(.667em + 2px) calc(1.333em + 2px);font-size:1.125em}.wp-block-file__button{background:#32373c;color:#fff;text-decoration:none} Problem 570 An official of a trade union rep... [FREE SOLUTION] | 91影视

91影视

An official of a trade union reports that the mean yearly wage is \(\$ 8,000\). A random sample of 100 employees in the union produced a mean of \(\$ 7,875\) with a standard deviation of \(\$ 1,000\). Test the null hypothesis at the 05 level of significance that the mean wage is \(\$ 8,000\) against the alternate hypothesis that the wage is greater than or less than \(\$ 8000\)

Short Answer

Expert verified
Based on the two-tailed hypothesis test with a 0.05 level of significance, we fail to reject the null hypothesis that the mean yearly wage is \$8,000. There is not enough evidence to conclude that the mean wage is different from \$8,000.

Step by step solution

01

State the Null and Alternative Hypotheses

Null Hypothesis (H鈧): The mean yearly wage is equal to \$8,000. H鈧: 渭 = \$8,000 Alternative Hypothesis (H鈧): The mean yearly wage is not equal to \$8,000. H鈧: 渭 鈮 \$8,000
02

Calculate the Test Statistic

To calculate the test statistic, we use the following formula: \[ t = \frac{\bar{x} - 渭}{\frac{蟽}{\sqrt{n}}} \] Here, \( \bar{x} = \$7,875 \) (the sample mean), \( 渭 = \$8,000 \) (the claimed population mean), \( 蟽 = \$1,000 \) (the standard deviation), and \( n = 100 \) (number of employees in the sample). Plugging these values into the formula: \[ t = \frac{\$7,875 - \$8,000}{\frac{\$1,000}{\sqrt{100}}} \]
03

Simplify the Test Statistic

Next, we simplify the test statistic: \[ t = \frac{-125}{\frac{1,000}{10}} \] \[ t = \frac{-125}{100} \] \[ t = -1.25 \]
04

Calculate the Critical Values

Since we are using a two-tailed test, we will look for the critical values in the t-distribution table using the degrees of freedom and the given level of significance. Degrees of freedom = \( n - 1 = 100 - 1 = 99 \) Level of significance = 0.05 for a two-tailed test, so we use 0.025 in each tail. Looking up the critical values with 99 degrees of freedom and a 0.025 level of significance, we find the critical values to be approximately -1.984 and 1.984.
05

Compare the Test Statistic and Critical Values

Now, we compare the test statistic (-1.25) to the critical values (-1.984 and 1.984): -1.984 < -1.25 < 1.984 Since the test statistic falls within the critical values, we fail to reject the null hypothesis.
06

Conclusion

Given the sample data and analysis, there is not enough evidence to reject the null hypothesis that the mean yearly wage is \$8,000. Therefore, we cannot conclude that the mean wage is different from \$8,000 at the 0.05 level of significance.

Unlock Step-by-Step Solutions & Ace Your Exams!

  • Full Textbook Solutions

    Get detailed explanations and key concepts

  • Unlimited Al creation

    Al flashcards, explanations, exams and more...

  • Ads-free access

    To over 500 millions flashcards

  • Money-back guarantee

    We refund you if you fail your exam.

Over 30 million students worldwide already upgrade their learning with 91影视!

Key Concepts

These are the key concepts you need to understand to accurately answer the question.

t-test
The t-test is a statistical test used to determine if there is a significant difference between the means of two groups. It is particularly useful when dealing with small sample sizes or when the population standard deviation is unknown. In the context of our exercise, the t-test helps determine whether the mean wage of the union employees is statistically different from the reported \$8,000.
To perform a t-test, you start by calculating the t-statistic using the formula:\[ t = \frac{\bar{x} - 渭}{\frac{蟽}{\sqrt{n}}} \] where:
  • \(\bar{x}\) is the sample mean
  • \(渭\) is the population mean
  • \(蟽\) is the sample standard deviation
  • \(n\) is the sample size
By interpreting the resulting t-statistic, we assess how far it falls from zero within the t-distribution, allowing us to decide about the hypotheses.
null hypothesis
The null hypothesis, often denoted as \(H_0\), is a statement used in statistics that assumes no effect or no difference. It's the baseline assumption that any observed difference in a sample is due to random chance. In our exercise, the null hypothesis is that the mean yearly wage is equal to \\(8,000. This is the claim we are testing against.
A null hypothesis is crucial because it provides a specific statement that can be tested statistically. By assessing the null hypothesis, we can determine whether the sample data provides sufficient evidence to support an alternative hypothesis. The alternative hypothesis, in this context, suggests that the mean wage is not equal to \\)8,000. Rejecting or failing to reject the null hypothesis leads to conclusions about the population parameters based on the sample data.
critical values
Critical values are the boundary values that outline regions in the tails of a distribution. These boundaries help in making decisions on whether to reject the null hypothesis. For a two-tailed t-test, like in our example, critical values separate significant results from non-significant ones.
To find the critical values, we use the t-distribution table considering:
  • The degrees of freedom, calculated as \(n - 1\)
  • The level of significance (alpha), divided by two for a two-tailed test
In our exercise, with 99 degrees of freedom and a 0.05 significance level divided into two tails (0.025 each), the critical values are approximately -1.984 and 1.984. If the calculated t-statistic falls outside these critical values, it indicates a statistically significant difference from the null hypothesis.
level of significance
The level of significance, denoted by \( \alpha \), represents the probability of rejecting a true null hypothesis, also known as the Type I error rate. It's the threshold set by the researcher to decide whether to accept or reject the null hypothesis. Typically, a common level of significance is 0.05, meaning that there's a 5% risk of concluding that a difference exists when there is none.
In our exercise, we set the level of significance at 0.05, which is customary for many social sciences studies. This means that if the likelihood of observing our sample result is less than 5%, assuming the null hypothesis is true, we would reject the null hypothesis. The choice of this level is somewhat subjective but should reflect the balance between the risk of error and the need for confidence in the results.

One App. One Place for Learning.

All the tools & learning materials you need for study success - in one app.

Get started for free

Most popular questions from this chapter

An investigator tested two samples, one of boys and one of girls. He wanted to know whether the results for girls are significantly more variable than for boys. Test for this at the \(5 \%\) level of significance using the following sample data. \begin{tabular}{|c|c|c|} \cline { 2 - 3 } \multicolumn{1}{c|} {} & Sample Size & \(\mathrm{S}^{2}\) \\ \hline Boys & 8 & \(50.21\) \\ \hline Girls & 9 & \(147.62\) \\ \hline \end{tabular}

Suppose the previous problem's experiment was carried out with a sample size of 8 . The mean, \(\underline{\mathrm{X}}\), for the 8 test cases for polished steel was 86,375 . The mean, \(\underline{Y}\), for the 8 test cases for unpolished steel was 79,838 . Can we conclude at a \(1 \%\) level of significance that the average endurance limit of polished specimens is greater than the average endurance limit for unpolished specimens?

For the following samples of data, compute \(\mathrm{t}\) and determine whether \(\mu_{1}\) is significantly less than \(\mu_{2}\). For your test use a level of significance of \(10 .\) Sample \(1: \mathrm{n}=10, \underline{\mathrm{X}}=10.0\) \(\mathrm{S}=5.2\); sample \(2: \mathrm{n}=10, \underline{\mathrm{X}}=13.3, \mathrm{~S}=5.7\)

You are studying problem solving performance using time as a measure. Your subjects usually either solve the problems quickly or take a long time, but only rarely do they take an intermediate amount of time. You select a sample of 10 subjects and give them training that you believe will reduce their mean time for solving the problem set. You wish to compare their performance with that of another sample of 10 who did not receive the instruction. Outline an appropriate statistical test and suggest changes in the plan of the experiment. Use a level of significance of \(.05\).

A recent report claims that college non-graduates get married at an earlier age than college graduates. To support the claim, random samples of size 100 were selected from each group, and the mean age at the time of marriage was recorded. The mean and standard deviation of the college non-graduates were \(22.5\) years and \(1.4\) years respectively, while the mean and standard deviation of the college graduates were 23 years and \(1.8\) years. Test the claims of the report at the \(.05\) level of sionificance.

See all solutions

Recommended explanations on Math Textbooks

View all explanations

What do you think about this solution?

We value your feedback to improve our textbook solutions.

Study anywhere. Anytime. Across all devices.