Question
10. An employment information service claims the mean annual salary for full-time workers age 25 or over without a high school diploma is less than
10. An employment information service claims the mean annual salary for full-time workers age 25 or over without a high school diploma is less than $26,000. Assume the population standard deviation is $2,500. Further assume that you have a sample of 30 full-time workers age 25 or over.
How low would the average of the sample have to be in order for a hypothesis test, with = 0.01, to result in enough evidence to support that the population mean annual salary for full-time workers age 25 or over is LESS than $26,000? (Hint: Make up some sample averages below $26,000 and report one that is right on the borderline of rejecting/not rejecting the null hypothesis. Show all work for that test).
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