Employees in a large computer firm claim that the mean salary of the firm’s programmers is less than that of its competitors. The competitor’s salary is $47,000. A random sample of 30 of the firm’s programmers has a mean salary of $46,500 with a standard deviation of 5500. Calculate the test statistic for the hypothesis: Ho: mean >= 47000, H1: mean < 47000

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  1. Z = (mean1 - mean2)/standard error (SE) of difference between means

    SEdiff = √(SEmean1^2 + SEmean2^2)

    SEm = SD/√(n-1)

    If only one SD is provided, you can use just that to determine SEdiff.

    Find table in the back of your statistics text labeled something like "areas under normal distribution" to find the proportion/probability related to that Z score.

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