# Hypothesis

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Use these data and hypothesis-testing techniques along with a 5% level of significance to determine whether the mean hourly wage of a manufacturing worker has changed.

PROBLEM:

According to the U.S. Bureau of Labor Statistics (http://www.bls.gov), the average hourly wage in the manufacturing sector in 2000 was $19.86 in the United States. Suppose a labor researcher wants to test to determine whether this figure is still accurate today. The researcher randomly selects 54 workers from manufacturing sector from across the United States and obtains a representative earning statements from each. The resulting sample average is $20.96, with a standard deviation of $3.

Use these data and hypothesis-testing techniques along with a 5% level of significance to determine whether the mean hourly wage of a manufacturing worker has changed.

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##### Solution Summary

The solution address using these data and hypothesis-testing techniques along with a 5% level of significance to determine whether the mean hourly wage of a manufacturing worker has changed.

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We can construct a confidence interval for the sample mean at 0.05 level of confidence. If the population mean $19.86 falls within this confidence interval, we can say that the mean hourly wage of a manufacturing worker hasn't ...

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