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Z test for mean

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The director of a state agency believes that the average starting salary for clerical employees in the state is less than $30,000 per year. To test her hypothesis, she collected a simple random sample of 100 starting clerical salaries from across the state and found that the sample mean is $29,750.

1: State the appropriate null and alternative hypothesis.
2: Assuming the population standard deviation is known to be $2,500 and the significance level for the test is to be 0.05, what is the critical value (stated in dollars)?
3: Referring to your answer in part b, what conclusion should be reached with respect to the null hypothesis?
4: referring to your answer in part c, which of the two statistical errors might have been made in tis case> explain.

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Solution Summary

The solution provides step by step method for the calculation of test statistic using a Z test. The formula for the calculation and an interpretations of the results are also included.

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The director of a state agency believes that the average starting salary for clerical employees in the state is less than $30,000 per year. To test her hypothesis, she collected a simple random sample of 100 starting clerical salaries from across the state and found that the sample mean is $29,750.

1: State the appropriate null and alternative hypothesis.
H0: Mean salary for clerical employees in the ...

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