Reference no: EM1311606
Wall Street securities firms paid out record year-end bonuses of $125,500 per employee for 2005 (Fortune, February 6, 2006). Suppose we would like to take a sample of employees at the Jones & Ryan securities firm to see whether the mean year-end bonus is different from the reported mean of $125,500 for the population.
a. State the null and alternative hypotheses you would use to test whether the year-end bonuses paid by Jones & Ryan were different from the population mean.
H0: µ =
Ha: µ =
b. Suppose a sample of 40 Jones & Ryan employees showed a sample mean year-end bonus of $118,000. Assume a population standard deviation of $33,000 and compute the p-value (to 4 decimals).
c. With α = .05 as the level of significance, what is your conclusion?
Answer the next three questions using the critical value approach.
d. Using α = .05, what is the critical value for the test statistic? (+ or -)
e. Calculate the test statistic (to 2 decimals).
f. Using α = .05, can you conclude that the year-end bonuses paid by Jones & Ryan were different from the population mean?