Question 320757: 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. What is the P-value for this one-sided test?
Answer by stanbon(75887)   (Show Source):
You can put this solution on YOUR website! 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.
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A group of hospital administrators randomly sampled 64 psychiatrists and found an average annual salary of $198,630.
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t(198,630) = (198,630-189121)/[26975/sqrt(64)) = 2.8201
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The group claims that the average annual salary is actually higher than what the American Medical Association reported.
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Therefore right-tail test
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What is the P-value for this one-sided test?
P-value = P(t > 2.8201 when df=63) = tcdf(2.8201,1000,63) = 0.0032
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Cheers,
Stan H.
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