1.
Null Hypothesis H0: Mean daily workers earnings = $112
Alternative hypothesis H1: H0: Mean daily workers earnings >
$112
Level of significance = 0.05
As, we know the population standard deviation, we will conduct one sample z test to conduct the hypothesis test.
Standard error of sample mean =
Test statistic, z = (Observed mean - Hypothesized mean) / standard error
= (117 - 112) / 1.180584
= 4.235
For right tail test, p-value = P(z > 4.235) = 0.00001
As, p-value is less than the significance level of 0.05, we reject null hypothesis H0 and conclude that there is significant evidence that the mean daily workers earnings is greater than $112 and thus there is is significant evidence that there is increase in mean daily workers earnings.
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