Reference no: EM133990133
Assignment:
(a) What form should H0 and H1 take if the investigator is concerned only about salary discrimination against female members?
(b) If this hypothesis test supports the conclusion of salary discrimination against female members, a costly class-action suit will be initiated against American colleges and universities. Under these circumstances, do you recommend using the .05 or the .01 level of significance? Why?
Progress Check *10.5 According to the American Psychological Association, members with a doctorate and a full-time teaching appointment earn, on the average, $82,500 per year, with a standard deviation of $6,000. An investigator wishes to determine whether $82,500 is also the mean salary for all female members with a doctorate and a full-time teaching appointment.
Salaries are obtained for a random sample of 100 women from this population, and the mean salary equals $80,100.
(a) Someone claims that the observed difference between $80,100 and $82,500 is large enough by itself to support the conclusion that female members earn less than male members. Explain why it is important to conduct a hypothesis test.
(b) The investigator wishes to conduct a hypothesis test for what population?
(c) What is the null hypothesis, H0?
(d) What is the alternative hypothesis, H1?
(e) Specify the decision rule, using the .05 level of significance.
(f) Calculate the value of z. (Remember to convert the standard deviation to a standard error.)
(g) What is your decision about H0?
(h) Using words, interpret this decision in terms of the original problem.