SOLUTION: Hypothesis Test- (1 sample/2 Tail) Conduct a 7-step Hypothesis Test to determine if the year-end bonus is different from the reported mean. Known Information: u= 125500 x w

Question 481260: Hypothesis Test- (1 sample/2 Tail)
Conduct a 7-step Hypothesis Test to determine if the year-end bonus is different from the reported mean.
Known Information:
u= 125500
x with line over top= 118000
s= 30000
n= 40
I need to see the 7 steps on paper and how you would figure that on Excel.
Answer by stanbon(75887) (Show Source): You can put this solution on YOUR website!
Conduct a 7-step Hypothesis Test to determine if the year-end bonus is different from the reported mean.
Known Information:
u= 125500
x with line over top= 118000
s= 30000
n= 40
---------------
Ho: u = 125500
H1: u is not equal to 125500
------------------
test statistic: t = (118000-125500)/[30000/sqrt(40)] = -1.5811
----
To draw a conclusion you can compare the test statistic to
the critcal value for a t-test or you can use the p-value
comparison.
----
Since yours is a 2-tail test,
p-value = 2*P(t < -1.5811 when df = 39)
= 2*tcdf(-100,-1.5811,39)
= 0.1219
Note: I used a TI-84 to find the probability
that t was less then -1.5811 when df = 39.
Then I doubled it because of the 2-tail feature.
Hope this helps.
If it doesn't make any sense, use the critical value test.
=============
Conclusion: Since the p-value is greater than 5% fail
to reject Ho.
===================
Cheers,
Stan H.
=====================

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