The city manager of Shinbone has received a complaint from the local union of firefighters to the
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The city manager of Shinbone has received a complaint from the local union of firefighters to the effect that they are underpaid. Not having much time, the city manager gathers the records of a random sample of 27 firefighters and finds that their average salary is $38,073, with a standard deviation of $575. If she knows that the average salary nationally is $38,202, how can she respond to the complaint? Should she use a onetailed test in this situation? Why? What would she say in a memo to the union that would respond to the complaint?
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