Question

In a recent year, according to the Bureau of Labor Statistics, the median number of years that wage and salary workers had been with their current employer (called employee tenure) was 3.5 years. Information on employee tenure has been gathered since the early 1950's using the Current Population Survey (CPS), a monthly survey of 50,000 households that provides information on employment, unemployment, earnings, demographics, and other characteristics of the U. S. population. With respect to employee tenure, the questions measure how long workers had been with their current employer, not how long they plan to stary with their employer.

Employee Tenure of 20 workers

4.1, 2.3, 3.5, 4.6, 3.1, 1.2, 3.9, 2.1, 1.0, 4.5, 3.2, 3.4, 4.1, 3.1, 2.8, 1.4, 3.4, 4.9, 5.7, 2.6

A) A congressional representative claims that the median tenure for workers from the representative's district is less than the national median tenure of 3.5 years. Thae claim is based on the representative's data shown above. Assume that the employees were randomly selected.

1) How would you test the representative's claim?

2) Can you use a parametric test, or do you need a nonparametric test? Why?

3) State the null and alternative hypothesis.

4) Test the claim using alpha = 0.05. What can you conclude? Show your work, the process that you used, and the result.

Answer 1