Question

Question 18 (1 point) A large software development firm recently relocated its facilities. Top management is interested in fostering good relations with their new local community and has encouraged their professional employees to engage in local service activities. They want to test if the firm's professionals volunteer an average of more than 15 hours per month. If this is not the case, they will institute an incentive program to increase community involvement. A random sample of 24 professionals is used in this test. Then, the critical t-value (t*) with a 5% significance level is Ot* =2.069 Ot* = 1.714 Ot* =-1.714 Ot* =-2.069

Answer 1

The null and alternative hypotheses for this case are,

H0 : μ = 15

Ha : μ > 15

sample size (n) = 24

=> Degrees of freedom = 24 - 1 = 23

Since, this is right-tailed test, t-critical value at significance level of 0.05 with 23 degrees of freedom is, t^* = 1.714

Excel Command : =TINV(0.10, 23) = 1.714

Answer : t^* = 1.714