Question

In a particular city, the average salary of secretaries is $29,000 per year. Secretaries at Company A claim that they are paid less than the city average. In a sample of 45 secretaries, their average salary was $25,500 per year with a standard deviation of $5,000.

What is the test value for this hypothesis?

Answer 1

Value of z will be -4.695

Explanation:

We have given
`\bar{x}=$25500`

Mean
`\mu =$29000`

Standard deviation
`\sigma=$5000`

Sample size n = 45

We have to find the z for the hypothesis

We know that z is given by

`z=\frac{\bar{x}-\mu }{(\sigma )/(√(n))}=(25500-29000 )/((5000 )/(√(45)))=-4.695`