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  • Exercise 04APR2023 QEM 1004-5

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    Jayson Ordinaria
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    This document reports the results of a hypothesis test comparing the average hourly wages between City A and City B. A z-test was conducted to determine if City A's average wage of $9.8 was more than $0.50 higher than City B's average of $9.1. The calculated p-value of 0.31561 was greater than the significance level of 0.05, so the null hypothesis that the wages are less than $0.50 apart cannot be rejected.

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    Excercise on Hypothesis Testing

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    This document reports the results of a hypothesis test comparing the average hourly wages between City A and City B. A z-test was conducted to determine if City A's average wage of $9.8 was more than $0.50 higher than City B's average of $9.1. The calculated p-value of 0.31561 was greater than the significance level of 0.05, so the null hypothesis that the wages are less than $0.50 apart cannot be rejected.

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    9 views1 page

    Exercise 04APR2023 QEM 1004-5

    Uploaded by

    Jayson Ordinaria
    This document reports the results of a hypothesis test comparing the average hourly wages between City A and City B. A z-test was conducted to determine if City A's average wage of $9.8 was more than $0.50 higher than City B's average of $9.1. The calculated p-value of 0.31561 was greater than the significance level of 0.05, so the null hypothesis that the wages are less than $0.50 apart cannot be rejected.

    Copyright:

    © All Rights Reserved
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    of 1

    5.) Test the hypothesis that the average hourly wage for City A is more than $0.

    50 per hour
    above the average hourly wage in City B using the following data.

    Test at the α = 0.05 level. What is the p-value for this test?

    n1=60 n2=80

    x̄1=9.8 x̄2=9.1

    σ1=2.25 σ2=2.7

    α = 0.05

    H0: µ1 - µ2 ≤ 0.5

    Ha: µ1 - µ2 > 0.5

    σx̄1- x̄2 =0.4189

    Z=0.47744

    p-value = 0.31561 (from z-table)

    p-value obtained is > 0.05, therefore, null hypothesis will not be rejected.

    Therefore, there is no sufficient evidence that the average hourly wage for City A is more than
    $0.50 per hour above the average hourly wage in City B.

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