1) The survey conducted last year by my students in Business Studies found out that the average net income for Business graduates is $74,914. One of my current students queried the results and decided to repeat the research by taking a random sample of 112 Business Graduates to determine whether the net income figure is different.

A. Establish the hypotheses.

B. Determine the appropriate statistical test and sampling distribution.

C. Specify type I error or a.

D. Suppose the 112 Business Graduates who respond produce a sample mean of %78,695 and the standard deviation of net incomes - $14,530. Can the student reject the null hypothesis?

2. InareportpreparedbytheEconomicResearchDepartmentofamajorbanktheDepartmentmanagermaintainsthattheaverageannualfamilyincomeonMetropolisis$48,432.Whatdoyouconcludeaboutthevalidityofthereportifarandomsampleof400familiesshowsandaverageincomeof$48,574withastandarddeviationof2000?

• A.Specifypopulationparameterofinterest

B. Establish hypotheses (the null and alternative hypotheses)

C. Show if the alternative hypothesis is one or two tails

D. Decide which statistical test is appropriate to for the hypothesis testing

E. Provide the formula for the test statistics you select in (c)

F. Specify type one error

G. Use p-value OR Use critical value method to determine the critical values

H. Make statistical decision

I. Provide managerial conclusion