According to the National Association of Colleges and Employers (NACE), the average starting salary for a college graduate from the Class of 2013 is $45,327 per year. Suppose that in an effort to test to see if this mean is similar locally, an economist decides to take a survey of 400 members of the University of Kentucky's Class of 2013 and in the process discovers that the sample mean starting salary is $43,971 per year with a population standard deviation of $9,895.

a. Set up the relevant null and alternative hypothesis. (4 points)

b. Compute the value of the appropriate test statistic. (4 points)

c. Use the critical value approach to test the economist's claim at ï= .05. (4 points)

d. Repeat the analysis with the p-value approach. (3 points)

e. How would this analysis change if the standard deviation of the population was known? (5 points)