Salaries of entry-level computer engineers have Normal distribution with unknown mean and variance. Three randomly selected computer engineers have following salaries (in $1000s): 70, 80, 90. The average and the standard deviation of the data in the sample are 80 and 10. Using hypothesis testing, determine if this sample provides a sufficient evidence, at a 10% level of significance, that the average salary of all entry-level computer engineers is different from $60,000.
a. Null hypothesis.
b. alternative hypothesis.
c. test statistic.
d. acceptance region.

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Answer:

H0 : μ = 60000

H1 : μ ≠ 60000

Test statistic = 3.464

Step-by-step explanation:

Given :

Sample mean salary, xbar = 80000

Sample standard deviation, s = 10000

Population mean salary , μ = 60000

Sample size, n = 3

Hypothesis :

H0 : μ = 60000

H1 : μ ≠ 60000

The test statistic :

T = (xbar - μ) ÷ (s/√(n))

T = (80000 - 60000) ÷ (10000/√(3))

T = 20000 / 5773.5026

T = 3.464

The Decison region :

If Tstatistic >Tcritical

Tcritical at 10%, df = 2 ; two - tailed = 2.9199

Tstatistic > Tcritical ; He

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