To start, we need to define our Null and Alternative Hypotheses. I’ve written them in words below:
Null Hypothesis (H0): The average work week for engineers in start-up companies is 60 hours or longer.
Alternative Hypothesis (Ha): The average work week for engineers in start-up companies is shorter than 60 hours.
We will use a one-sample t-test here to test these hypotheses. Let's calculate the p-value based on the provided data:
Length of Average Work Week: 70; 50; 60; 65; 65; 55; 55; 55; 55; 55.
Step 1: We first need to calculate the t-test statistic. The formula for the test statistic is given as follows:
t = (x̄ - μ) / (s / √n)
Based on this formula, we only have two given variables, which are μ (60) and n (10). We need to find two additional variables, (x̄) and (s), which represent the sample mean and sample standard deviation, respectively.
The sample mean can be calculated by taking the sum of all the data values and dividing it by the total number of observations, as follows:
x̄ = (70 + 50 + 60 + 65 + 65 + 55 + 55 + 55 + 55 + 55) / 10
x̄ = 580 / 10
x̄ = 58 hours
To find the sample standard deviation, we use the formula:
s = [√∑(xi - x̄)2 / (n - 1)]
And substitute values in for xi, x̄, and n:
s = √[(70 - 58)2 + (50 - 58)2 + (60 - 58)2 + (65 - 58)2 + (65 - 58)2 + (55 - 58)2 + (55 - 58)2 + (55 - 58)2 + (55 - 58)2 + (55 - 58)2 / (10 - 1)]
Simplifying:
s = √[62 + 64 + 4 + 49 + 49 + 9 + 9 + 9 + 9 + 9 / 9]
s = √30.67
s = 5.53 hours
Plugging in our values for the sample mean and sample standard deviation into the t-test statistic equation, we get:
t = (58 - 60) / (5.53 / √10)
Solving for t, we get:
t = -2.04
Step 2: Calculate the p-value
Using the t-table or statistical software both work in finding the p-value. In this problem, the p-value for the t-statistic of -2.04, with 9 degrees of freedom (10 - 1), is approximately 0.0358.
Here is a formal conclusion to finish out the problem:
Because the p-value of 0.0358 is less than the significance level of 0.05, we reject the null hypothesis. The data provides sufficient evidence suggesting that the average work week for engineers in start-up companies is shorter than 60 hours.