# Answer to Statistics question: Hypothesis testing problems

Work should be done in EXcel

Refer to the Wage data which report information on the annual wages for a SAMPLE OF 100 WORKERS. ALSO INCLUDED ARE VARIABLES RELATING TO THE INDUSTRY, YEARS OF EDUCATION, AND GENDER FOR EACH OTHER WORKER.(data can be found at

http://highered.mcgraw-hill.com/sites/0073030228/student_view0/index.html

a. Conduct a test of hypothesis to determine if the mean annual wage is greater than $30, 000. Use the .05 significance level. Determine the p-value and interpret the results.

b. Conduct a test of hypothesis of hypothesis to determine if the mean years of experience is different from 20. Use the .05 significance level. Determine the p-value and interpret the results.

c. Conduct a test of hypothesis to determine the mean age is less than 40. Use the .05 significance level. Determine the p value and interpret the results.

d. Conduct a test of hypothesis to determine if the proportion of Union workers is greater than 15 % Use the .05 level of significance, and report the p value.

#### Solution Summary

Step by step method for testing the hypothesis under 5 step approach is discussed here. Excel template for each problem is also included. This template can be used to obtain the answers of similar problems.