Discussion:
Q1: Suppose that a company CEO claims that the average severance package for an employee at his company is $500,000. You decide to test his claim using a significance level of a=0.05. A sample of 55 employees yields a mean of =$485,155 with a sample standard deviation of s=$125,575. First, you set up your hypothesis as follows:
H0: μ = $500,000 (claim)
H1: μ $500,000
Q2: Compute the probability of getting a sample statistic at least as extreme as and interpret this probability value.