Testing Hypotheses: One Sample Tests

A company, recently criticized for not paying women as much as men working in the same positions, claims that its average salary paid to all employees is $23,500. From a random sample of 29 women in the company, the average salary was calculated to be $23,000. If the population standard deviation is known to be $1,250 for these jobs, determine whether we could reasonably (within 2 standard errors) expect to find $23,000 as the sample mean if, in fact, the company’s claim is true.

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