Question: Felton School of Electronics claims that the average starting salary
Felton School of Electronics claims that the average starting salary for its recent graduates is at least $ 38,000. You suspect the average is less and plan to contact a simple random sample of 50 of Felton graduates nationwide. To test Felton’s claim, you set up the competing hypotheses: H0: μ > 38,000 (Felton’s claim) Ha: μ < 38,000. You intend to use the following decision rule: Reject the null hypothesis if the sample mean is less than $ 37,250. What is the significance level implied by this rule? Assume a population standard deviation of $ 2100.
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