Question

Jane has just begun her new job as on the sales force of a very competitive company. In a sample of 16 sales calls it was found that she closed the contract for an average value of 108 dollars with a standard deviation of 12 dollars. Company policy requires that new members of the sales force must exceed an average of more than $100 per contract during the trial employment period. Can we conclude that Jane has met this requirement at the significance level of 90%

Answer 1

There is significant evidence that Jane has met the requirement.

Explanation:

Given that:

μ = 100

μ > 100

Sample size, n = 16

Sample mean, x = 108

Sample standard deviation, s = 12

Level of significance, α = 0.1

Degree of freedom, df = n - 1 = 16 - 1 = 15

Test statistic

T = (x - μ) / s÷sqrt(n)

Tstatistic = (108 - 100) / 12 ÷ sqrt(16)

Tstatistic = 8 / 3

Tstatistic = 2.6667

Using the pvalue calculator :

Tstatistic at 0.1, df = 15 ;

P-value = 0.008799

Since pvalue < α

We reject the Null

The is no significant evidence to conclude that Jane has exceeded an average of more than $100