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3. The majority of taxpayers are within the four age categories: I= <26-35>, II = <36-45>, III = < 46-55 > and IV =
3. The majority of taxpayers are within the four age categories: I= , II = , III = < 46-55 > and IV = < 56 - 65 >. In order to compare the income of these four categories, find the following variables: a) Test at the 10% significance level the claim that the mean income of a 26-35 y.o. person is different from the mean income of a 36-45 y.o. person. b) Construct the 90% confidence interval for the difference of -r. Can we conclude at the 10% significance level that the income in these age groups are different? c) Can we infer at the 10% significance level that mean income for four age categories (I, II, III, IV) are different? Should we reject Ho at the 5% significance level? Explain. (Hint: Perform the ANOVA test of comparison of the population means assuming that all of the requirements are met. Use the calculated earlier means, variances for I, II, III, IV and the total mean .)
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