c. Conduct the hypothesis test. Should your company get the contract? Why or why not?

*14. The Pareto distribution f(x;

e, c) = cllex-ll+liJllc.ooJ(X), for e > 0 and c > 0, has been used to model the distribution of incomes in a given population of individuals, where c represents the minimum level of income in the population. In a certain large state on the East Coast, the office of fiscal management is investigating a claim that professors at four-year universities have average annual salaries that exceed the state average annual salary for middle management, white collar workers, which is known to be $62,471. A random sample of 250 professors'

salaries was obtained, and the geometric mean of the observations was found to be (n7=1 x;p/n = 61.147, where the x;'s are measured in thousands of dollars. As part of the maintained hypothesis, the value of c is taken to be 30.