document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=193134>Question 193134</A>This question is from textbook <A HREF=http://www.amazon.com/exec/obidos/ASIN/9780073534961/algebrahomeworkh>Elementary Statistics</A><BR>\n" );
document.write( ": <I><SPAN STYLE=\"word-break: break-all;\"> 4.) Nationwide, the average salary of actuaries who achieve that rank of Fellow is $150,000. An insurance executive wants to see how this compares with Fellows within his company. He checks the salaries of eight Fellows and find the average salary to be $155,500 with a standard deviation of $15,000. Can he conclude that fellows in his company make more than the national average, using standar deviation=0.05?\r<BR>\n" );
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document.write( "Thanks </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #144988 by </B><A HREF=/tutors/aboutme.mpl?userid=stanbon><B>stanbon(75887)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=stanbon><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/images/nopicture.jpg><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=144988\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> Nationwide, the average salary of actuaries who achieve that rank of Fellow is $150,000. An insurance executive wants to see how this compares with Fellows within his company. He checks the salaries of eight Fellows and find the average salary to be $155,500 with a standard deviation of $15,000. Can he conclude that fellows in his company make more than the national average, using standar deviation=0.05? <BR>\n" );
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document.write( "Ho: u = 150,000<BR>\n" );
document.write( "Ha: u > 150,000<BR>\n" );
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document.write( "test statistic: t(155,500) = (155,500-150,000)/[0.0547] = a very large number<BR>\n" );
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document.write( "Comment: I doubt that you have posted the standard deviation properly.<BR>\n" );
document.write( "Textbook problems do not normally yield a teststatistic in the thousands.<BR>\n" );
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document.write( "Cheers,<BR>\n" );
document.write( "Stan H. </SPAN>\n" );
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