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 =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 > 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: