In 2015, the average hourly compensation (salary plus benefits) for federal workers was $40.32 (source: Chris Edwards,

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In 2015, the average hourly compensation (salary plus benefits) for federal workers was $40.32 (source: Chris Edwards, “Reducing the costs of federal worker pay and benefits,” www.downsizinggovernment.org, Oct. 1, 2015). The file titled Paychecks contains a random sample of the hourly amounts paid to state and local government workers.

a. If hourly pay is thought to be normally distributed, what proportion of state and local employees receive pay higher than the average for federal employees?

b. Calculate the sample proportion of the state and local government workers whose hourly compensation is less than $40.32.

c. Determine the probability that the sample proportion would be equal to or greater than the answer obtained in part b.

d. On the basis of your work in parts

a, b, and

c, would you conclude that the proportion of state and local workers whose hourly compensation is less than $40.32 is the same as that of the federal workers? Explain.

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Business Statistics

ISBN: 9781292220383

10th Global Edition

Authors: David Groebner, Patrick Shannon, Phillip Fry

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