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Hypothesis Test for the Average Salaries of a College Graduates

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A college wishes to make the claim that 50% of it's graduates earn more than $70,000 ten years after graduation. The distribution of salaries of these graduates is completely unknown. A sample of 15 ten year alumni were surveyed and they reported their salaries to be (see attached).

Is there evidence, at the 5% significance level, that the $70,000 figure is too high?

See the attached file.

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Solution Summary

The solution shows how to determine if there is enough evidence for a hypothesis test in an attached Word document.

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Please see the attached solution.

(Hypothesis Test. Please use t-Test or Chi square test method. Please use excel to solve this and provide the evidence of your work. Need only essential steps of your solution).

Solution. This is a test for the proportion of the population. Let p be the proportion of graduates who earn more than $70,000. We would test

Null ...

Solution provided by:
Changping Wang, MA
Education
  • BSc , Wuhan Univ. China
  • MA, Shandong Univ.
Recent Feedback
  • "Your solution, looks excellent. I recognize things from previous chapters. I have seen the standard deviation formula you used to get 5.154. I do understand the Central Limit Theorem needs the sample size (n) to be greater than 30, we have 100. I do understand the sample mean(s) of the population will follow a normal distribution, and that CLT states the sample mean of population is the population (mean), we have 143.74. But when and WHY do we use the standard deviation formula where you got 5.154. WHEN & Why use standard deviation of the sample mean. I don't understand, why don't we simply use the "100" I understand that standard deviation is the square root of variance. I do understand that the variance is the square of the differences of each sample data value minus the mean. But somehow, why not use 100, why use standard deviation of sample mean? Please help explain."
  • "excellent work"
  • "Thank you so much for all of your help!!! I will be posting another assignment. Please let me know (once posted), if the credits I'm offering is enough or you ! Thanks again!"
  • "Thank you"
  • "Thank you very much for your valuable time and assistance!"
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