Question
Five years ago the average household income in a certain region was $19,857. An economist studying economic growth wishes to test, at the 10% level
Five years ago the average household income in a certain region was $19,857. An economist studying economic growth wishes to test, at the 10% level of significance, whether it has increased now. In a random sample of 50 households the economist calculates, the average income to be $20,058 with a sample standard deviation of $1,143. a. Perform the test using the information collected by the economist using the critical value approach. b. Use the p-value approach and compare the results with the results obtained using the critical value approach.
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