Population Standard Deviation is given to be 4000, we can use z Test to verify the hypothesis that µ>35000

Population Standard Deviation is given to be=4000, Hence we can use z Test to verify the hypothesis (H_α) µ>35000. Null Hypothesis(H₀) is µ=35000, α = .05

Sample mean is 34000, size of sample is 200 and Population σ = 4000

Hence z=. This works out to z = -3.535

Hence Mean value of 34000 is more than three and a half times of standard deviation less than the expected value

P=(z ≤ -3.53 When H₀ is true)

= area under the z curve to the left of =-3.53

= .0002

Now .0002< .05, which indicates that H₀ is true

This means the claim made by the employer is not reasonable.

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