Corporate sustainability refers to business practices designed around social and
ID: 3066053 • Letter: C
Question
Corporate sustainability refers to business practices designed around social and environmental considerations. The level of support senior managers have for corporate sustainability was measured quantitatively on a scale ranging from 0 to 160 points. A study on the sustainability behavior of CPA corporations provided the following information on the distribution of levels of support for sustainability: =68, = 27. Now consider a random sample of 45 senior managers. Assuming the findings from the study are true, how likely is it to observe a sample mean of 65 for the sample of 45 senior managers.
if it is a hypothesis test question, you need to show details for the following steps:
The null and alternative hypotheses
Test statistic
Rejection, please show on the distribution curve (the bell curve)
P-value: if z distribution is used
Decision: whether to reject or not to reject the null
Conclusion: what you do find in term of the specific situation described in the question.
Explanation / Answer
=68, = 27, n = 45
Answer to the question is as follows:
P(X=65) = ?
Hypothesis:
Ho: Mu = 68
Ha: Mu!= 68
Test statitic = (Xbar - Mu)/SE
=(65-68)/(27/sqrt(45))
=-0.7454
At alpha = .05 we have Z statistic of +/-1.96 for a 2 tailed test.
Since our test statistic of -.7454 is within this +/- 1.96 region we fail to reject the null hypothesis
and conclude that Ho: Mu = 68
P-value is .456 and it is more than .05.
Decision: Do not reject the null hypothesis
Conclusion: It is likely to observe a sample mean of 65 for the sample of 45 senior managers