Help please I have to get this finished
2 answers:
You might be interested in
Using hypothesis test, we conclude that there is evidence to believe that the average household income has increased.
According to the question,
The average household income for a recent year (x₁⁻) = $30,000
The average household income for a recent year (x₂⁻) = $24,500
sample sizes n₁ = n₂ = 34
standard deviation of both samples were $24,500. Thus, s₁ = s₂ = $5928.
Null hypothesis: There is no evidence to believe that the average household income has increased.
H₀ : μ₁ ≤ μ₂
Alternative hypothesis: There is evidence to believe that the average household income has increased.
H₁: μ₁ > μ₂
To check hypothesis we have the formula
Standard error=
=
= 1437.7512
Thus, standard error is $1437.7512.
Formula for test statistic = [(x₁⁻ - x₂⁻) - (μ₁ - μ₂)]/standard error
= [(30000 - 24500) - 0]/1437.7512
= 3.8254
The critical value of z at 5% level of significance is 1.6449.
Here, the calculated value is greater than the critical value so we reject H₀.
Hence using hypothesis test, we conclude that there is evidence to believe that the average household income has increased.
Learn more about hypothesis test here
#SPJ2