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The Employment and Training Administration reported that the U.S. mean unemployment insurance benefit was $238 per week (The World Almanac, 2003). A researcher in the state of Virginia anticipated that sample data would show evidence that the mean weekly unemployment insurance benefit in Virginia was below the national average.

For a sample of 100 individuals, the sample mean weekly unemployment insurance benefit was$231 with a sample standard deviation of $80. What is the p-value?

Solution

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Given:

  • x\overline{x} = Sample mean = 231
  • ss = Sample standard deviation = 80
  • nn = Sample size = 100
  • α\alpha = Significance level = 0.05

In this exercise, we determine the P-value of the hypothesis test.

What is the P-value?

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