A recent report by the American Medical Association stated the average annual salary of psychiatrists is $189,121 with a population standard deviation of $26,975. A group of hospital administrators randomly sampled 64 psychiatrists and found an average annual salary of $198,630. The group claims that the average annual salary is actually higher than what the American Medical Association reported. What is the P-value for this one-sided test?
A) 0.0024
B) 0.0035
C) 0.1328
D) 0.0237

Question

Quizplus · Accepted Answer

To find the P-value, we perform a one-sample z-test. The test statistic is calculated as: z = (198,630 - 189,121) / (26,975 / sqrt(64)) = 3.53. Using a standard normal distribution table or calculator, the P-value corresponding to z = 3.53 is approximately 0.0002, which is closest to option A (0.0024).

A Recent Report by the American Medical Association Stated the Average