# Labor Rates

The U.S. Bureau of Labor Statistics (http://www.bls.gov) released hourly wage figures for western countries in 2000 in the manufacturing sector. The hourly wage was $24.01 in Germany, $22.00 in Japan, and $19.86 in the United States.

PROBLEM:

Suppose 50 manufacturing workers are selected randomly from across the United States. What is the probability that the sample average will be less than $18.50?

NOTE: Assume that in all three countries, the standard deviation of hourly labor rates is $3.

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#### Solution Preview

The goal of this question is to conduct a z-test.

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<br>But first, you have to set up the hypothesis.

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<br>The null hypothesis states that sample average will be less than $18.50

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<br>The alternative ...

#### Solution Summary

The U.S. Bureau of Labor Statistics (http://www.bls.gov) released hourly wage figures for western countries in 2000 in the manufacturing sector. The hourly wage was $24.01 in Germany, $22.00 in Japan, and $19.86 in the United States.

PROBLEM:

Suppose 50 manufacturing workers are selected randomly from across the United States. What is the probability that the sample average will be less than $18.50?

NOTE: Assume that in all three countries, the standard deviation of hourly labor rates is $3.