Salaries of Government Employees The mean salary of

Chapter 8, Problem 8

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QUESTION:

Salaries of Government Employees The mean salary of federal government employees on the General Schedule is $59,593. The average salary of 30 state employees who do similar work is $58,800 with s _ $1500. At the 0.01 level of significance, can it be concluded that state employees earn on average less than federal employees? Source: New York Times Almanac.

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QUESTION:

Salaries of Government Employees The mean salary of federal government employees on the General Schedule is $59,593. The average salary of 30 state employees who do similar work is $58,800 with s _ $1500. At the 0.01 level of significance, can it be concluded that state employees earn on average less than federal employees? Source: New York Times Almanac.

ANSWER:

Step 1 of 4

Let  be the given sample's size, its mean  dollars and its standard deviation 1500 dollars. Furthermore, let  be the given significance level. We want to test the following hypothesis:

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