Question 1177342: A recent report by the American Medical Association stated the average annual salary of psychiatrists is $189,121 with a population standard deviation of $26,975. A group of hospital administrators randomly sampled 64 psychiatrists and found an average annual salary of $198,630. The group claims that the average annual salary is actually higher than what the American Medical Association reported. At a= 0.01, what is the best conclusion of this test based on the p value?
Answer by ewatrrr(24785)   (Show Source):
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Hi
POpulation: μ = $189,121 σ = $26,975
n = 64 x̄ = $198,630
Ho: p = $189,121
Ha: p > $189,121
a= 0.01 0r z = 2.326 ONe-tailed
N > 60 AND population σ known.
Appropriate for a z-test 
z = (198630 - 189121) / 26.975/sqrt(64) = 2.82
p-value = .0024
2.82 > 2.326
0r
.0024< .05 Reject Ho.
Conclusion: average annual salary > $189,121
Wish You the Best in your Studies.
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