Suppose you are interested in testing the following hypotheses: Ho: > 20 Hy: <...

 

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Suppose you are interested in testing the following hypotheses: Ho: μ > 20 Hy: μ < 20 That is, the null hypothesis is that hourly wages are $20 or more per hour for the thousands of workers who work in a factory, while the alternative hypothesis is that hourly wages are less than $20 per hour. In this case, the research question is: Do workers make less than $20 per hour? To test these hypotheses, you collect wages for a random sample of 25 workers (n = 25). The sample mean (X) for these 25 workers is $18 while the sample standard deviation (s) is $10. Assume that the population is normally distributed (since we can't rely on the Central Limit Theorem with only 25 observations). What is the 1-percent critical value for this test? What is the value of the test statistic associated with this null hypothesis? Can you reject the null hypothesis at the 1-percent level of significance? Show your work and explain. What is the p-value associated with your test statistic? Conduct the same test as above, but using the p-value approach. You can use R to find the p-value. A. B. C. Suppose you are interested in testing the following hypotheses: Ho: μ > 20 Hy: μ < 20 That is, the null hypothesis is that hourly wages are $20 or more per hour for the thousands of workers who work in a factory, while the alternative hypothesis is that hourly wages are less than $20 per hour. In this case, the research question is: Do workers make less than $20 per hour? To test these hypotheses, you collect wages for a random sample of 25 workers (n = 25). The sample mean (X) for these 25 workers is $18 while the sample standard deviation (s) is $10. Assume that the population is normally distributed (since we can't rely on the Central Limit Theorem with only 25 observations). What is the 1-percent critical value for this test? What is the value of the test statistic associated with this null hypothesis? Can you reject the null hypothesis at the 1-percent level of significance? Show your work and explain. What is the p-value associated with your test statistic? Conduct the same test as above, but using the p-value approach. You can use R to find the p-value. A. B. C.

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SOLUTION A To find the 1percent critical value for this test we need to use a onetailed ttest with d... View the full answer