A recent report claimed that Americans are retiring later in life (U.S.News & World Report,August 17,2011).An economist wishes to determine if the mean retirement age has increased from 62.To conduct the relevant test,she takes a random sample of 38 Americans who have recently retired and computes the value of the test statistic as t₃₇ = 1.92.With α = 0.05,she ____________________________________________________. A) rejects the null hypothesis and concludes that the mean retirement age has increased B) rejects the null hypothesis and concludes that the mean retirement age has not increased C) does not reject the null hypothesis and does not conclude that the mean retirement age has changed D) does not reject the null hypothesis and does not conclude that the mean retirement age has increased

Question

Quizplus · Accepted Answer

The test statistic, t₃₇, is greater than the critical value of t for α = 0.05 with 37 degrees of freedom. Therefore, the economist rejects the null hypothesis and concludes that the mean retirement age has increased.

A Recent Report Claimed That Americans Are Retiring Later in Life