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3. Suppose that incomes are normally distributed. You observe 10 incomes of 70, 10 incomes of 74, and 10 incomes of 81. (a) Find a

3. Suppose that incomes are normally distributed. You observe 10 incomes of 70, 10 incomes of 74, and 10 incomes of 81.

(a) Find a 90% confidence interval for the population average income. (b) Using a significance level of 10%, test the null hypothesis that the population average

income is 76 against the alternative hypothesis that it is less than 76.

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