Employees from A and company B receive annual bonuses. What information would you need to test the claim that the difference in annual bonuses is greater than $100 at the 0.5 level of significance? Write out the hypothesis and explain the testing procedure in details

1. The required information are

The average annual bonuses, received by employees from company A

The average annual bonuses, received by employees from company B

The standard deviation, σ₁, of the average annual bonuses for employees from company A

The standard deviation, σ₂, of the average annual bonuses for employees from company A

The number of employees in company A, n₁

The number of employees in company B, n₂

2. The null hypothesis is H₀: - ≤ 100

The alternative hypothesis is Hₐ: - > 100

Step-by-step explanation:

1. The required information are

The average annual bonuses, received by employees from company A

The average annual bonuses, received by employees from company B

The standard deviation, σ₁, of the average annual bonuses for employees from company A

The standard deviation, σ₂, of the average annual bonuses for employees from company A

The number of employees in company A, n₁

The number of employees in company B, n₂

2. The null hypothesis is H₀: - ≤ 100

The alternative hypothesis is Hₐ: - > 100

The z value for the hypothesis testing of the difference between two means is given as follows;

At 0.5 level of significance, the critical = ± 0

The rejection region is z > and z < -

Therefore, the value of z obtained from the relation above more than or less than 0, we reject the null hypothesis, and we fail to reject the alternative hypothesis.