Question

In the past the average age of employees of a large corporation has been 40 years. Recently, the company has been hiring older individuals. In order to determine whether there has been an increase in the average age of all the employees, a sample of 25 employees was selected. The average age in the sample was 45 years with a standard deviation of 5 years. Assume the distribution of the population is normal. Let = .05.
a. State the null and the alternative hypotheses.
b. Test to determine whether or not the mean age of all employees is significantly more than 40 years.

Answer

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