Five years ago,the average starting salary of a new college graduate with a major in marketing was $34,000.A random sample of 10 graduates from this year's graduating class of a local university yielded the following starting salaries in thousands of dollars: 28,36,25,37,35,24,38,45,39,and 36.The local university wants to determine if the median starting salary for marketing graduates has increased in the last five years. Assume that the population of starting salaries in marketing is not normally distributed.Using $\alpha$ = .05,can we conclude that the starting salaries increased in the last five years?
A)Reject the null hypothesis
B)Fail to reject the null hypothesis

Question

Quizplus · Accepted Answer

H₀: M_d $\neq$ 34,000 or H₀: M_d = 34,000,H_A: M_d > 34,000Reject H₀ if p-value is < $\alpha$ p-value = P(X $\ge$ 8)= (.0439)+ (.0098)+ (.001)= .0547.0547 > .05,failed to reject H₀It appears that the median starting salary for marketing graduates has not significantly increased.

Five Years Ago,the Average Starting Salary of a New College α\alphaα

Five Years Ago,the Average Starting Salary of a New College $\alpha$