According to Management Accounting, salary figures for certified management accountants (CMAs) who are in the field less than 1 year are normally distributed with a mean of $31,129. A random sample of 15 first year CMAs in Denver produces a mean salary of $32,279, with a standard deviation of $1,797. Test the hypothesis that the mean for all Denver first year CMAs is not equal to 31,129. Use the .05 level of significance. State the null hypothesis H0: _____________ State the alternative hypothesis H1: _____________ What is the test statistic used for the test (z or t) and its value (round to 2 places) State the significance or alpha (α) level Determine the p-value. (round to 4 places) Do you or do you not reject the null hypothesis? Why? Write a clear conclusion using a complete sentence.
Continuous Probability Distributions
Probability distributions are of two types, which are continuous probability distributions and discrete probability distributions. A continuous probability distribution contains an infinite number of values. For example, if time is infinite: you could count from 0 to a trillion seconds, billion seconds, so on indefinitely. A discrete probability distribution consists of only a countable set of possible values.
Normal Distribution
Suppose we had to design a bathroom weighing scale, how would we decide what should be the range of the weighing machine? Would we take the highest recorded human weight in history and use that as the upper limit for our weighing scale? This may not be a great idea as the sensitivity of the scale would get reduced if the range is too large. At the same time, if we keep the upper limit too low, it may not be usable for a large percentage of the population!
According to Management Accounting, salary figures for certified management accountants (CMAs) who are in the field less than 1 year are
- State the null hypothesis H0: _____________
- State the alternative hypothesis H1: _____________
- What is the test statistic used for the test (z or t) and its value (round to 2 places)
- State the significance or alpha (α) level
- Determine the p-value. (round to 4 places)
- Do you or do you not reject the null hypothesis? Why?
- Write a clear conclusion using a complete sentence.
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