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Highland is a nice town, but recently many families have been moving to Lawndale. Researchers are interested in how this has impacted household incomes. To
Highland is a nice town, but recently many families have been moving to Lawndale. Researchers are interested in how this has impacted household incomes. To investigate, they draw random samples of households in each city. In a sample of 619 Lawndale households, the average household income was $62,104 (s= $4723). In a sample of 530 Highland households, the average household income was $61,281(s= $4549). First, the researchers wanted to construct a 90% confidence interval for the difference in household income between Lawndale and Highland. a. What is the notation and value of the sample statistic? b. What is the standard error? Round to three decimal places. c. What is the multiplier for the 90% CI (t*)? Round to three decimal places. d. What is the value of the confidence interval? Round to three decimal places. e. Interpret the confidence interval in context. f. Is it feasible to say that the average household income in Lawndale is more than $1,000 higher than in Highland? Why or why not
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