The mean income per person in the United States is $44,500, and the distribution of incomes follows a normal distribution. A random sample of 16 residents of Wilmington, Delaware, had a mean of...


The mean income per person in the United States is $44,500, and the distribution of incomes follows a normal distribution. A random sample of 16 residents of Wilmington, Delaware, had a mean of $52,500 with a standard deviation of $9,500. At the 0.050 level of significance, is that enough evidence to conclude that residents of Wilmington, Delaware, have more income than the national average?


a. State the null hypothesis and the alternate hypothesis.


b. State the decision rule for 0.050 significance level.


c. Compute the value of the test statistic.


d. Is there enough evidence to substantiate that residents of Wilmington, Delaware, have more income than the national average at the 0.050 significance level?



Jun 09, 2022
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