Question

A dean claims to the president that the mean wage earned by new graduates is $22 per hour. An associate dean believes that this claim might be false and thinks that the mean wage of new graduates is probably lower than this amount. A random sample of 50 college graduates is obtained and yields a sample average of $20 and a sample standard deviation of $18. Choose a level of significance of 5%. a) Set up the null and alternative hypotheses to test the validity of the associate's dean claim. b) Give the test statistic and its distribution. c) Draw a sketch of the rejection region if we use a 0.05 level of significance. d) What is the intuition behind choosing a 0.05 level of significance? e) Carry out the test and state your conclusion. f) Include a sketch showing the p-value.

Name: a dean claims to the president that the mean wage earned by new graduates is 22 per hour an associate dean believes that this claim might be false and thinks that the mean wage of new gradua 33933
Uploaded: 2023-07-03T15:49:42-08:00
Duration: 2 min 51 s
Channel: Sri K
Description: a dean claims to the president that the mean wage earned by new graduates is 22 per hour an associate dean believes that this claim might be false and thinks that the mean wage of new gradua 33933

          A dean claims to the president that the mean wage earned by new graduates is $22 per hour. An associate dean believes that this claim might be false and thinks that the mean wage of new graduates is probably lower than this amount. A random sample of 50 college graduates is obtained and yields a sample average of $20 and a sample standard deviation of $18. Choose a level of significance of 5%.

a) Set up the null and alternative hypotheses to test the validity of the associate's dean claim.
b) Give the test statistic and its distribution.
c) Draw a sketch of the rejection region if we use a 0.05 level of significance.
d) What is the intuition behind choosing a 0.05 level of significance?
e) Carry out the test and state your conclusion.
f) Include a sketch showing the p-value.

Added by Taylor B.

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