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The average starting salary of students who graduated

By admin / June 25, 2020

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The average starting salary of students who graduated from colleges of Business in 2009 was $48,400.
A sample of 100 graduates of 2010 showed an average starting salary of $50,000. Assume the standard
deviation of the population is known to be $8000. We want to determine whether or not there has
been a significant increase in the starting salaries.
Step 1. Statement of the hypothesis (1.5 marks)
Step 2. Standardised test statistic formula (1 mark)
Step 3. State the level of significance (1 mark)
Step 4. Decision Rule (Draw a bell to show rejection zone) (3 marks)
Step 5. Calculation of the statistic (2 marks)
Step 6. Conclusion (1.5 marks)

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