Monday, December 12, 2011

I need help with Null and Alternative Hypothesis

I have to define the null and alternative hypothesis for the following issue.





A manger would like to confirm that performance is being rewarded. He therefore splits the salary data into two samples : employees whose average rating is 5 or below and those acheiving an average of above 5. Ten employees fall into the first category and 14 the 2nd.





We are given a list of the 24 employees' salary and performance ratings.





How do I go about creating these hypothesis? And is it one tailed or two? etc?etc?|||We're trying to compare salaries here.





Let 碌1 = average salary for workers with a rating of 5 or less


Let 碌2 = average salary for workers with a rating of above 5





We expect that the higher rated they are, the more their salary is (better performance is rewarded).





Ho: 碌1 = 碌2 (assume true initially)


Ha: 碌1 %26lt; 碌2





Because Ha is 碌1%26lt;碌2, it must be a one-sided test. You would then do a test (z or t, depending on whether you know the true/population mean and standard deviation or not) to see if you can reject/fail to reject Ho. Then state your conclusion.





[Answer: see above]

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