1)ABC Securities Firm paid out record year-end bonuses of $150,000 per employee for 2005. Suppose we would like to take a sample of employees at the ABC Securities firm to see whether the mean year-end bonus is different from the reported mean of $150,000 for the population.

a)State the null and alternative hypotheses you would use to test whether the year-end bonuses paid by ABC Securities were different from the population mean.

b)Suppose a sample of 40 employees showed a sample mean year-end bonus of $130,000. Assume a population standard deviation of $30,000 and compute the p- value.

c)With a .05 as the level of significance, what is your conclusion?

d)Repeat the preceding hypothesis test using the critical value approach.

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