Question

4. A random sample of 1,557 undergraduates enrolled in management ethics courses was asked to respond on a scale from 1 (strongly disagree) to 7 (strongly agree) to the proposition that senior corporate executives are interested in social justice. The sample mean response was 3.10, and the sample standard deviation was 1.24. Test at the 1% significance level, against a two-sided alternative, the null hypothesis that the population mean is 3.0.

Answer 1

The null and alternative Hypothesis Ho: u = 3.0 Hj: u #3.0 The test statistic is, -u _3.10-3.0 1.24 -= 3.1822 V1557 (Rounded to four decimal places) The critical z at 1% significance level is 2.58 Conclusion: The value of z test statistic is greater than critical z. Hence we reject null hypothesis H. at 1% level of significance and conclude that the population mean is not equal to 3.0