Question

You are in your senior year of college. You just sat for and passed the CPA and are ready to graduate with your degree in Accounting.... Life is good and you don't have a care in the world... except for your impending student loan debt. How are you going to pay for that? Well that depends on finding a job and how much money you make in that job. This makes you particularly concerned about what your starting salary will be. You've done some research (Professional websites, job boards, government job data etc.) and a number that seems to be the generally accepted starting salary is $48,000. You have found that the industry standard deviation is $2,500. Though you have friends, family, and fellow students that were willing to give you information on their salaries in the same field. Your hope is that this sample will give evidence that the starting salary is higher than this. You are tasked to run a hypothesis test. What are your hypotheses? Question 1 options: Ho: µ ≤ $48,000; Ha: µ > $48,000 Ho: µ > $48,000; Ha: µ ≤ $48,000 Ho: µ ≥ $48,000; Ha: µ < $48,000 Ho: µ < $48,000; Ha: µ ≥ $48,000

Answer 1

Null hypothesis is that the starting salary is $48000 or less (Ho: μ ≤ 48000)

Alternative hypothesis is that the starting salary is more than $48000 (Ha: μ > 48000)