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Problem 1: Identify and explain which test statistic you will use for your hypothesis test: z or t? Find the value of the test statistic.
Answer and Explanation:
Since our population standard deviation is unknown, will use the t-test statistic. The formula for t-test statistic is: = (x¯ - μ) / (s /). With the previous data collected, know the sample mean, sample standard deviation and the sample size: x¯ = 71,879 s = 23367.36 and = 364. The population mean we are using in this scenario is μ = 75,000.
So, with that information can calculate the t test statistic in excel:
= (71879 - 75,000) / (23367.36 / sqrt (364))
which gives me an answer of = -2.548.
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