Suppose you hypothesized that the average salary in the company is $75,000. You then collect a sample of salaries for employees of the company. Using statistical theory, you know that, if the average salary is $75,000, then the probability that your sample average is above $90,000 or below $60,000 is 0.05. If you observe an average salary of $91,000:
A. you make the deductive argument that the probability that your sample average is above $90,000 or below $60,000 is not 0.05. The strength of this argument is 95%.
B. you make the inductive argument that the average salary in the company is not $75,000. The strength of this argument is 95%.
C. you make the inductive argument that the probability that your sample average is above $90,000 or below $60,000 is not 0.05. The strength of this argument is 5%.
D. None of the answers is correct.
Answer: B
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