A recent report claimed that Americans are restring later in life (U.S News-& Wo
ID: 3230391 • Letter: A
Question
A recent report claimed that Americans are restring later in life (U.S News-& World Report. August 17, 2011, An economist wished to determine if the mean retirement age has from 62. To construct the relevant test. She takes a random sample of 38 Americans who have recently retried and computes the value of the test statistic as t-s = 1.92 with a she____ Does not reject the null hypotheses and does not conclude that the mean retirement age has changed Rejects the null hypotheses and concludes that the mean retirement age has increased Rejects the null hypotheses and concludes that the mean retirement age has not increased Does not reject the null hypotheses and does not conclude that the mean retirement age has increased.Explanation / Answer
Claim: The mean retirement age has increased from 62.
Sample size = 38
Level of significance = 0.05
Test statistic is t = 1.92
Degrees of freedom = n - 1 = 38 - 1 = 37
Critical value = 2.026 ( Using t table)
Test statistic < critical value we fail to reject null hypothesis.
Conclusion: Do not reject the null hypothesis and does not conclude that the mean retirement age has increased.