The mean hourly wage for employees in goods-producing industries is currently $2

Question

The mean hourly wage for employees in goods-producing industries is currently $26.04. Suppose a random sample of 30 employees from the manufacturing industry showed a sample mean hourly wage of $25.32. Based on this sample, a bootstrap distribution (for constructing a confidence interval) would be centered at or near $25.32. If we wanted to perform a hypothesis test to see if there is evidence that the mean hourly wage in the manufacturing industry (mu) differs from the population mean hourly wage in goods-producing industries ($26.04), what transformation would need to be applied to each bootstrap sample mean in order to end up with a correctly- centered randomization distribution? ___ [numerical value] should be ___ [added to/subtracted from] each value.

Explanation / Answer

$26.04-$25.32 = $0.72 should be added to each value.

The reason is $26.04 is the mean of the goods-producing industries while that of sampled manufacturing industry is at $25.32. Hence, this difference should be added to values of the sample from the manufacturing industry.

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