# Hypotheses test for the United States Department of Labor

In 2001, the U.S. Department of Labor reported the average hourly earnings for U.S. production workers to be $14.32 per hour. A sample of 60 production workers during 2003 showed a sample mean of $14.68 per hour. Assuming the population standard deviation σ = $1.55, can we conclude that an increase occurred in the mean hourly earnings since 2001? Use α = .05.

a) In proper notation, state the hypotheses of this test.

b) Show your calculation of the test statistic. ______ = ______________

c) Give the p-value of the test to 4 decimals. p = ________________________

d) What is the conclusion about the issue in question

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... ______ = ______________

c) Give the p-value of the test to 4 decimals. p = ________________________

d) What is the conclusion about the issue in question

Solution:

a) In proper notation, state the hypotheses of this test.

Null hypothesis:

H0: 14.32

H0: The average hourly earnings for U.S. production workers to be less than or equal to $14.32 per hour

Alternate hypothesis:

H1: > 14.32

H1: The average hourly earnings ...