Problem 5
a) Suppose that, in a random sample of 40 accounting studentswho had their second co-op term in W19, the sample mean and hourlywage and standard deviation were $20.10 and $3.15, respectively.Calculate a 95% confidence interval for the mean hourly wage of allaccounting students with a second co-op term in W16. Interpret yourinterval.
b) Suppose that based on historic data accounting students ontheir first co-op term typically earn an average of $17.84 perhour. Does the data collected in part a) suggest that accountingstudents in their second co-op earn on average more than those ontheir first co-op? Perform a hypothesis test at a 10% level ofsignificance to test this. Clearly state your conclusion.
