MALLARI, DANIEL

HMA 201
Question: The minimum wage earners of the National Capital Region are
believed to be receiving less than PHP 500 per day. The CEO of a large
supermarket chain in the region is claiming to be paying its contractual
higher than the minimum daily wage rate of PHP 500. To check on this claim,
a labour union leader obtained a random sample of 144 contractual
employees from supermarket chain. The survey of their daily wage earnings
resulted to an average wage of PHP 510 per day with standard deviation of
PHP 100. The daily wage of the region is assumed to follow a distribution
with an unknown population variance. Perform a test of hypothesis of 5%
level of significance to help the labour union leader ake an empirical- based
conclusion on the CEO’s claim.
Step 1:
H0: μ ≤500
H1: μ>500
Step 2:
Level of significance = 5% or 0.05
Step 3:
Z – test; because n ¿ 30
n = 144
Step 4:
Z – statistic
Given:
N = 144, x́ = 510, S = 100, μ0 = 500, δ = 0/05
Sx
Formula:
√n
x−μ
Z = Sx
√n
510−500
Z= 100
√144
 10
Z = 100
12
Z = 1.20

Step 5:
Z score or critical value of Z (using z table)
Z score = 1.645 or 1.65

50% 45%
5%

Z score = 1.645 ( see at Z table ) or 1.65

5% = rejection region
Step 6:
Computed z is less than the critical value ( Z ¿ Z score ) therefore we do not
reject the will hypothesis ≫ the claimed of the CEO is not true, the rate of
the earners are at most PHP 500 or less than ≪