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RC Hypothesis Test for Population Parameter Salary Distribution in Minnesota Case Study

Question Description

Competency

Given a real-life application, develop a hypothesis test for a population parameter and its interpretation.

Instructions

Scenario (information repeated for deliverable 01, 03, and 04)

Amajor client of your company is interested in the salary distributionsof jobs in the state of Minnesota that range from $30,000 to $200,000per year. As a Business Analyst, your boss asks you to research andanalyze the salary distributions. You are given a spreadsheet Click for more options

that contains the following information:

  • A listing of the jobs by title
  • The salary (in dollars) for each job

Inprior engagements, you have already explained to your client about thebasic statistics and discussed the importance of constructing confidenceintervals for the population mean. Your client says that he remembers alittle bit about hypothesis testing, but he is a little fuzzy. He asksyou to give him the full explanation of all steps in a hypothesistesting and wants your conclusion about a claim that the average salaryfor all jobs in the state of Minnesota is less than $74,500 and a secondclaim that the average salary for all jobs in the state of Minnesota isgreater than $70,500.

Background information on the Data

Thedata set in the spreadsheet consists of 364 records that you will beanalyzing from the Bureau of Labor Statistics. The data set contains alisting of several jobs titles with yearly salaries ranging fromapproximately $30,000 to $200,000 for the state of Minnesota.

What to Submit

Your boss wants you to submit the spreadsheet with the completed calculations, answers, and analysis.

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