The mean salary of federal government employees on the Gener

The mean salary of federal government employees on the General Schedule is $59593. The average salary of 30 randomly selected state employees who do similar work is $58800 with . At the level of significance, can it be concluded that state employees earn on average less than federal employees? (Use the P-value method and show all 5 steps).

Solution

Ho : mu = 59593
Ha: mu < 59593

z = (58800 - 59593)/(1500/sqrt(30)) = -2.8956

critical z = - 2.327 at 0.01 level and left-tailed test.

Hence, computed z (-2.8956) < critical z (- 2.327).
Reject Ho.

conclusion : It be concluded that state employees earn an average
less than federal employees