Question

. According to Management Accounting, salary figures for certified management accountants (CMAs) who are in the field less than 1 year are normally distributed with a mean of $31,129. A random sample of 15 firstyear CMAs in Denver produces a mean salary of $32,279, with a standard deviation of $1,797. Test the hypothesis that the mean for all Denver firstyear CMAs is not equal to $31,129. Use the .05 level of significance.

Answer 1

Answer:

The Mean is not equal to $31,129.

Step-by-step explanation:

Consider the provided information.

The mean is $31129

Thus, the null hypothesis $H_0: \mu = 31129$

Alternative hypothesis $H_a: \mu \neq 31129$

A random sample of 15 firstyear CMAs in Denver produces a mean salary of $32,279, with a standard deviation of $1,797.

Thus the value mean of sample is 32279, standard deviation is 1797 and number of samples are 15.

Now use the 2 sided t-test.

$t=\frac{x-\mu}{\frac{\sigma}{\sqrt{n}}}$

Now substitute the respective values in the above formula.

$t=\frac{32279-31129}{\frac{1797}{\sqrt{15}}}$

$t=\frac{1150}{464}$

Test Value = 2.4785  approximately

Now, find the corresponding p-value in your t-table with DF(degree of freedom) 14.

p = 0.0265  

as the value of  p < 0.05, so you reject null hypothesis.  

Thus, the Mean is not equal to $31,129.