Chapter 8.2, Problem 8E

For Exercises 1 through 25, perform each of the following steps.

a. State the hypotheses and identify the claim.

b. Find the critical value(s).

c. Compute the test value.

d. Make the decision.

e. Summarize the results.

Use diagrams to show the critical region (or regions), and use the traditional method of hypothesis testing unless otherwise specified.

8. Salaries of Government Employees The mean salary of federal government employees on the General Schedule is $59,593. The average salary of 30 randomly selected state employees who do similar work is $58,800 with σ = $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.