A management consultant has analysed a random sample of 40 large firms in order to investigate the mean annual salary of sales managers. She has constructed the following 90% confidence interval for the population mean annual salary: $45,382 to $48,618. In testing the hypothesis that the population mean annual salary is $50,000 she should:
Question 11 options:
Conclude H0 at the 5% level of significance
Conclude H0 at the 10% level of significance
Conclude H1 at the 5% level of significance
Conclude H1 at the 10% level of significance
1 answer
Conclude H1 at the 5% level of significance, since it is a one-tailed test and it is well beyond the 90% confidence limits.