The mean gross annual incomes of certified tack welders are normally distributed with the mean of $50,000 and a standard deviation of $4,000. The ship building association wishes to find out whether their tack welders earn more or less than $50,000 annually. The alternate hypothesis is that the mean is not $50,000. When tested at the 99% level, these are the results found with megastat:
A) Since the p-value is 0.43 at this level of testing, there is insufficient evidence to say that the welders earn an income different from $50,000.
B) Since the p-value is 0.43 at this level of testing, there is sufficient evidence to say that the welders earn more than $50,000.
C) The p-value of 0.043 indicates that there is sufficient evidence to say that the welders earn more than $50,000.

Question

The mean gross annual incomes of certified tack welders are normally distributed with the mean of $50,000 and a standard deviation of $4,000. The ship building association wishes to find out whether their tack welders earn more or less than $50,000 annually. The alternate hypothesis is that the mean is not $50,000. When tested at the 99% level, these are the results found with megastat: 
A) Since the p-value is 0.43 at this level of testing, there is insufficient evidence to say that the welders earn an income different from $50,000. 
B) Since the p-value is 0.43 at this level of testing, there is sufficient evidence to say that the welders earn more than $50,000. 
C) The p-value of 0.043 indicates that there is sufficient evidence to say that the welders earn more than $50,000.

Quizplus · Accepted Answer

At the 99% level of significance, the p-value (0.43) is greater than the level of significance (0.01). This indicates that we fail to reject the null hypothesis and do not have sufficient evidence to say that the mean income of tack welders is different from $50,000. Therefore, option A is correct. Option B is incorrect because the p-value does not support the claim that welders earn more than $50,000. Option C is also incorrect because the p-value is greater than the level of significance, and we cannot conclude that the welders earn more than $50,000.

The Mean Gross Annual Incomes of Certified Tack Welders Are