Discuss the below:
While negotiating a labor contract, the president of a company argues that the mean annual earnings of blue-collar workers is less than $56,000. The labor union argues that the salary is more than $56,000. A random sample of the annual earnings of 350 blue-collar workers
a. Assume the population standard deviation is $22,000 and use it to test the following hypothesis at a .01 level of significance:
H0: μ ≤ $56,000
Ha: μ > $56,000
Do the test results support the company president or the union?
b. Repeat the above hypothesis test. However, this time use the sample standard deviation in place of the population standard deviation.
c. Does replacing the population standard deviation with the sample standard deviation affect the outcome of the hypothesis test?
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