A government agency claims that the median hourly wages for workers at fast food restaurants in the western U.S. is $6.55. In a random sample of 100 workers, 68 were paid less than $6.55, 10 were paid
$6.55, and the rest more than $6.55. Find the test statistic z to test the governmentʹs claim.
A)-4.743
B)-3.912
C)-3.187
D)-2.386

Question

Quizplus · Accepted Answer

The sample median is (68+10)/100 = 0.78, which is less than the claimed median of 6.55. The test statistic is z = (0.78 - 6.55) / (sqrt(0.5 * 0.5 / 100)) = -4.743.

A Government Agency Claims That the Median Hourly Wages for Workers