95 confidence interval for the mean earnings of all female h

95% confidence interval for the mean earnings of all female hourly workers at National Banks 6,567, $18,490). Based on this confidence interval you a. reject the null hypothesis Ho: -$19,000 vs. Hai # $19,000 at the 5% significance level. b. do not reject the null hypothesis Ho: -319,000 vs. H $19,000 at the 5% significance level. c. reject the null hypothesis Ho: -$19,000 vs. Hai > $ 19,000 at the 1% significance level. d. do not reject the null hypothesis Ho: = $ 19,000 vs. Hai

Solution

16. Answer:A

Based on 95% confidence interval for mean, the null hypothesis should be accepted if the mean (under the null hypthesis) lies in the confidence interval, given the significance level is (100-95)% and a two sided test is considered.

Thus, in this case, reject the null hypothesis (as 19,000 does not lie in the confidence interval) at 5% significance level for a two-sided test. Hence, A is correct.