According to DOLE, the average salary of a new graduate food engineering student is P14,000. The president of the Food Engineering Organisation claims that their new members earn more than this. He surveys 45 randomly selected newly graduate FE students and finds their average salary is P15,500 with a standard deviation of P1,400. Is the president’s claim correct at a 5% level of significance?

Null Hypothesis:

Alternative Hypothesis:

Level of Significance: Choose from 0.25, 0.025, 0.50, 0.05 or 0.01

Test: Choose from Two-tailed, right-tailed or left-tailed

Test statistic to use: Choose from Z-test, t-test, chi-square test for variance or F-test

Critical value(s):

Decision rule (ex. reject Ho if tcalc < -1.234 or tcalc > 1.234))

The computed value of the test statistic:

Decision: Reject null hypothesis or fail to reject the null hypothesis

Conclusion:

P-value:

Decision base on P-value: Reject null hypothesis or fail to reject the null hypothesis