Suppose that someone claims that the median salary for indiv

Suppose that someone claims that the median salary for individuals in New Jersey with a business degree is at $85,000 or more. You feel that that is too high, so you collect a sample of 160 such individuals and find that 95 of them earn less than $85,000 and the other 65 earn more than that.

Using a significance level of 0.05, what is/are the critical value(s) for this hypothesis test?

-1.96 and +1.96

-1.64 and +1.64

-1.64

+1.64

I have gotten many different answers. I need to know which is the correct answer for sure.

Solution

It says \"you feel that it is too high\", which means you think it is lesser, so it is a left tailed test.

Thus, using a table or technology, the critical value for a 0.05 significant left tailed test is -1.64. [ANSWER, 3RD OPTION, -1.64]