Question: Hypothesis Testing

Click the 'scenario' button below to review the topic and then answer the following question:

The leadership wants to ensure that the employee pay is on par with industry standards. For an engineering manager, the industry average is $170,000.

Using a 0.05 significance level, construct a confidence interval (round to dollar) to test the claim that for the engineering managers in the company, the mean salary is at least $170,000. State the null hypothesis and alternative hypothesis in symbolic form using transliteration 'mu', and find the sample mean salary. Explain whether you reject or fail to reject the null hypothesis, and state a final conclusion that addresses the original claim.