Answer:
Yes it can be concluded that state employees earn on average less than federal employees
The critical value is [tex]Z_{\alpha } = - 2.33[/tex]
Step-by-step explanation:
From the question we are told that
The population mean is [tex]\mu = \$ 59593[/tex]
The sample size is n = 30
The sample mean is [tex]\= x = \$ 58800[/tex]
The standard deviation is [tex]\sigma = \$ 1500[/tex]
The significance level is [tex]\alpha = 0.01[/tex]
The null hypothesis is [tex]H_o : \mu = \$ 59593[/tex]
The alternative hypothesis is [tex]H_a : \mu < \$ 59593[/tex]
The critical value of [tex]\alpha[/tex] from the normal distribution table is [tex]Z_{\alpha } = - 2.33[/tex]
Generally the test statistics is mathematically evaluated as
[tex]t = \frac{\= x - \mu}{ \frac{ \sigma }{ \sqrt{n} } }[/tex]
=> [tex]t = \frac{ 58800 - 59593 }{ \frac{ 1500 }{ \sqrt{30} } }[/tex]
=> [tex]t = -2.896[/tex]
The p-value is obtained from the z-table
[tex]p-value = P(t < -2.896) = 0.0018898[/tex]
Since [tex]p-value < \alpha[/tex] , we reject the null hypothesis, hence it can be concluded that state employees earn on average less than federal employees
