The Average Starting Salary of Students Who Graduated from Colleges

Essay

The average starting salary of students who graduated from colleges of Business in 2009 was $48,400. A sample of 100 graduates of 2010 showed an average starting salary of $50,000. Assume the standard deviation of the population is known to be $8,000. We want to determine whether or not there has been a significant increase in the starting salaries.
a.State the null and alternative hypotheses to be tested.
b.Compute the test statistic.
c.The null hypothesis is to be tested at 95% confidence. Determine the critical value for this test.
d.What do you conclude?
e.Compute the p-value.