Discretion of the division director


Merit raises are given at discretion of the division director. The average raise at the ABC Company is $80 with the standard deviation of $30. The personnel manager is concerned that the certain division supervisor is too lenient in awarding merit increases. The personnel manager took the sample of 64 randomly chosen employees in that division. The mean increase was found to be $85. Is there enough evidence to support personnel manager's concern at the 3% level of significance?

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Basic Statistics: Discretion of the division director
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