Answer:
Test statistic
<em> Z = 2.820 > 1.96 at 0.05 level of significance</em>
<em>Null hypothesis is rejected at 0.05 level of significance</em>
<em>The average salary is actually higher than the reported the average of American Medical Association</em>
<u>Step-by-step explanation:</u>
<u><em>Step(i)</em></u>:-
Given data
sample size 'n' = 64
mean of the Population( μ) = $189,121
Standard deviation of the Population(σ) = $26,975
Mean of the sample (x⁻) = $198,630
<u><em>Step(ii):</em></u>-
<u><em>Null hypothesis : H₀ </em></u><em>: there is no significance difference between the means</em>
<u><em>Alternative Hypothesis :H₁</em></u> : <em>The average salary is actually higher than the reported the average of American Medical Association</em>
<em>Test statistic </em>
<em> </em><em></em>
<em> </em><em></em>
<em> Z = 2.820</em>
<em>Level of significance </em>
<em> ∝ =0.05</em>
<em> </em>
<u><em>Final answer</em></u><em>:-</em>
<em> Z = 2.820 > 1.96 at 0.05 level of significance</em>
<em>Null hypothesis is rejected at 0.05 level of significance</em>
<em>The average salary is actually higher than the reported the average of American Medical Association</em>
<em> </em>
<em></em>
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