Test of significance for average salary

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Reference no: EM1319912

The city manager of Tempe has received a complaint from the local union of firefighters stating they are underpaid. Not having much time, the city manager gathers records from a random sample of 20 firefighters and finds their average annual salary is $36,025 with a standard deviation of $575. If the city manager knows the average salary nationally is $38,300, which test of significance should be used? Why? Should it be one or two-tailed?

Reference no: EM1319912

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