Answered step by step
Verified Expert Solution
Question
1 Approved Answer
5. The mean household income in a region served by a chain of clothing stores 1s $48.750. In a sample of 40 customers taken at
5. The mean household income in a region served by a chain of clothing stores 1s $48.750. In a sample of 40 customers taken at various stores the mean income of the customers was $51,505 with standard deviation $6,852. a) Test at the 10% level of significance the null hypothesis that the mean household income of customers of the chain is $48,750 against that alternative that it is different from $48,750. (5 marks) b) The sample mean is greater than $48,750, suggesting that the actual mean of people who patronize this store is greater than $48,750. Perform this test, also at the 10% level of significance. (The computation of the test statistic done in part (a) still applies here.) (S marks)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started