A recent issue of AARP Bulletin reported that the average weekly pay for a woman with a high school diploma

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Question :  Hypothesis Testing

A recent issue of AARP Bulletin reported that the average weekly pay for a woman with a high school diploma was $520. Suppose you would like to determine if the average weekly pay for all working women is significantly greater than that for women with a high school diploma. Data providing the weekly pay for a sample of 50 working women are available in the Excel file (Weekly Pay). Formulate the null and alternative hypotheses and conduct the appropriate test. What is your conclusion? Weekly Pay 582 320 290 542 678 596 760 565 772 333 685 800 619 697 557 804 687 691 759 599 696 950 750 657 675 498 633 753 627 614 569 617 736 712 629 553 679 548 679 1230 565 533 523 641 667 570 598 648 587 424 Given: A recent issue of AARP Bulletin reported that the average weekly pay for a woman with a high school diploma was$520.

That is: Population mean = $\mu&space;=520$

We have to test if the average weekly pay for all working women is significantly greater than that for women with a high school diploma.

That is we have to test: $\mu&space;>&space;520$

We are given that the data of  weekly pay for a sample of 50 working women.

Thus we use following steps:

Step 1) State H0 and H1: