Question

A group of young businesswomen wish to open a high fashion boutique in a vacant store, but only if the average income of households in the area is at least $25,000. A random sample of 9 households showed the following results.$28,000 $24,000 $26,000 $25,000$23,000 $27,000 $26,000 $22,000$24,000Use statistical techniques to advise the group on whether or not they should locate the boutique in this store. Use a .05 level of significance.

Answer 1

Answer:

Based on the results the boutique could be located there.

Step-by-step explanation:

Note: The average income (the mean) is calculated by summing the total incomes then divided by the total sample–9.

The mean ù (average income) = $28,000 + $24,000 + $26,000 + $25,000 + $23,000 + $27,000 + $26,000 + $22,000 + $24,000= $225,000/9= $25,000 (which is ≥ $25,000.

Based on the results of the p-value, using the 5% significant level we fail to reject the null hypothesis (ú≥25,000).