Reference no: EM1320882

Question: According to the Bureau of Labor Statistics, the average weekly earnings of a production worker in 1997 were $424.20.  You are interested to know if wages, on average, have gone up.  To test this, you sample 64 production workers, & determine that their average salary is $432.69, with a sample st&ard deviation of $33.90. Use a 0.05 level of significance. 

[A] Given your answer to part b., are you vulnerable to a Type I or Type II error?  Explain why in a single sentence.

[B] Compute the p-value for this test.  Compute this value “as though” you set up the original hypothesis as a 2-tailed test (no matter how you actually set it up).  Interpret the meaning of the p-value in a single sentence.

[C] State the null & alternative hypothesis that best tests the hypothesis of interest. Be sure the alternative hypothesis reflects the question of interest.

[D] Carry out this test, & state whether you reject or fail to reject the null hypothesis. In computing the test statistic, be sure to indicate whether you are using “t” or “z”.