[mlh0031]

Sample of 105 workers for city of Euonymus Texas earns average of 24,375 per year. The average salary for all Euonymus workers is 24230 with a standard deviation of 523. Are the workers overpaid? Conduct both one- and two- tailed test

[justchill64]

Isn't this a two tailed
Its either they are over paid or under
One of the two

and it would be x bar - mean/ std / samplesize
or something like that

[mAsTeRiTy]

it would be a two tailed test if you were asked "overpaid or underpaid".in our case overpaid means one direction which is right-tailed since we are interested in knowing if paid more not less:

n=105
x bar=24,375
mean=24,230
std=523

H0: M=24,230
H1: M>24,230

taking alfa=0.05 with right-tailed test,then critical value=1.65
z=(x bar-mean)/(std/(n^0.5)=2.84>critical value
decision:reject H0,i.e. there is enough evidence to support the claim that workers are overpaid.