Access the hourly wage data on the below Excel Data File (Hourly Wage). An econo
ID: 3180413 • Letter: A
Question
Access the hourly wage data on the below Excel Data File (Hourly Wage). An economist wants to test if the average hourly wage is less than $26.
a.
Select the null and the alternative hypotheses for the test.
b.
Use Excel's function Z.TEST to calculate the p-value. Assume that the population standard deviation is $5. (Round your answer to 4 decimal places.)
c.
At = 0.10 what is the conclusion?
Access the hourly wage data on the below Excel Data File (Hourly Wage). An economist wants to test if the average hourly wage is less than $26.
Hourly Wage EDUC EXPER AGE Gender 12.62 11 2 40 1 18.79 4 1 39 0 12.28 4 2 38 0 11.22 5 9 53 1 39.80 6 15 59 1 17.15 6 12 36 1 36.58 9 5 45 0 28.56 4 12 37 0 37.45 5 14 37 1 17.38 11 3 43 1 39.59 8 5 32 0 29.39 9 18 40 1 12.92 7 1 49 1 32.93 4 10 43 0 16.70 1 9 31 0 14.92 9 22 45 0 15.38 11 3 31 1 18.38 4 14 55 0 19.86 6 5 30 1 43.69 9 3 28 0 15.32 6 15 60 1 41.28 4 13 32 0 36.69 4 9 58 1 35.22 5 4 28 0 18.20 6 5 40 1 42.12 6 2 37 0 32.35 4 18 52 1 20.61 6 4 44 0 20.94 6 4 57 0 21.75 9 3 30 1 13.07 5 8 43 0 22.83 7 6 31 1 18.97 4 3 33 0 15.71 6 23 51 1 28.95 4 15 37 0 18.52 4 9 45 0 35.65 6 3 55 0 25.72 5 14 57 0 11.58 9 16 36 1 16.15 4 20 60 1 23.35 4 5 35 0 36.14 9 10 34 0 21.62 5 4 28 1 31.58 6 1 25 0 20.24 7 10 43 1 11.34 9 2 42 1 36.16 4 17 47 0 43.11 11 2 46 1 27.83 4 15 52 0 18.33 8 11 64 0a.
Select the null and the alternative hypotheses for the test.
H0: = 26; HA: 26 H0: 26; HA: > 26 H0: 26; HA: < 26
b.
Use Excel's function Z.TEST to calculate the p-value. Assume that the population standard deviation is $5. (Round your answer to 4 decimal places.)
p-value
c.
At = 0.10 what is the conclusion?
Reject H0; the hourly wage is less than $26. Reject H0; the hourly wage is not less than $26. Do not reject H0; the hourly wage is less than $26. Do not reject H0; the hourly wage is not less than $26.Explanation / Answer
a) Claim : The average hourly wage is less than $26.
Null and alternative hypothesis is
H0: 26; HA: < 26
b) First enter hourly wages data into excel.
For finding p value use excel command =ZTEST(select values,26,5).
We get p-value = 1 - 0.962802 = 0.0371
c) p value < 0.1 so we reject null hypothesis.
Correct option is
Reject H0; the hourly wage is less than $26.