Explain the appropriate statistical analysis for the followi

Explain the appropriate statistical analysis for the following hypothesis:


H1: The average income of accountants is greater than $50,000.

Solution

We can do a 1-sample t test (or z test) here, depending if the sample size is large enough to use z distribution.

We use this statistical analysis because we will have 1 sample here, and we want to know if the MEAN is greater than 50000. As it involves 1 sample, and we are interested in the mean (average), then we use one-sample t test or z test.