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Question: 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 employes at the Jones & Ryan securities firm to see whether the mean year-end bonus is different from the reported mean of 5125.500 for the population.
a. State the null and alternative hypotheses you would we to test whether the year-end bonuses paid by Jones & Ryan were different from the population mean.
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 a= $30,000 and compute the p-value.
c. With α = .05 as the level of significance. what is your conclusion?
d. Repeat the preceding hypothesis test using the critical value approach.
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Jason Wright is a part-time business student who would like to optimize his financial decisions. Currently, he has $16,000 in his savings account.
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Michael Smyth worked for the Pillsbury Company. Pillsbury installed an electronic mail (e-mail) system in order to "promote internal communications.
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