Reference no: EM131895574

Dalal Street securities firms paid out record year-end bonuses of Rs 1,25,500 per employees for the year 2016. Suppose we would like to take a sample of employees at the Sharekhan securities firm to see whether the mean year-end bonus is different from reported mean of Rs 1,25,500 for the population.

1. State the null and alternative hypotheses you would use to test whether the mean year-end bonus paid by Sharekhan is different from the population mean. Calculate the interval estimate.

2. Suppose a sample of 40 Sharekhan employees showed a sample mean year-end bonus of Rs 1,18,000. Assume a population standard deviation of Rs 30,000 and compute the p-value.

3. With α = .05 as the level of significance, what is your conclusion?

4. Repeat the preceding hypothesis test using the critical value approach.