A business school dean in Ohio wants to know if graduates who completed an internship during their undergraduate years earn more than business undergraduates who do not complete an internship while in college. Based on national survey from 1,500 business alumni with less than six years of work experience, they earn on average $50,970 with a standard deviation of $12,976. Business alumni from the Ohio school who completed internships on average earned $53,497. The dean wants you to be 96% confident in your results. a. State in statistical terms the null and alternative hypotheses. b. Determine the appropriate test statistic (z or t). c. Determine the critical value(s).
Inverse Normal Distribution
The method used for finding the corresponding z-critical value in a normal distribution using the known probability is said to be an inverse normal distribution. The inverse normal distribution is a continuous probability distribution with a family of two parameters.
Mean, Median, Mode
It is a descriptive summary of a data set. It can be defined by using some of the measures. The central tendencies do not provide information regarding individual data from the dataset. However, they give a summary of the data set. The central tendency or measure of central tendency is a central or typical value for a probability distribution.
Z-Scores
A z-score is a unit of measurement used in statistics to describe the position of a raw score in terms of its distance from the mean, measured with reference to standard deviation from the mean. Z-scores are useful in statistics because they allow comparison between two scores that belong to different normal distributions.
A business school dean in Ohio wants to know if graduates who completed an internship during their undergraduate years earn more than business undergraduates who do not complete an internship while in college. Based on national survey from 1,500 business alumni with less than six years of work experience, they earn on average $50,970 with a standard deviation of $12,976. Business alumni from the Ohio school who completed internships on average earned $53,497. The dean wants you to be 96% confident in your results.
a. State in statistical terms the null and alternative hypotheses.
b. Determine the appropriate test statistic (z or t).
c. Determine the critical value(s).
d. Compute the test statistic.
e. Make a decision on the hypotheses. (which hypothesis is correct?)
f. Determine the p-value for the test statistic.
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