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

Solution

It says \"earns 85000 or more\", hence it is a right tailed test.

As this is right tailed, 0.05 significant, then the critical value using a table is OPTION D: 1.64. [ANSWER IS POSITIVE 1.64]