Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The mean household income in a region served by a chain of clothing stores is $48,750. In a sample of 40 customers taken at various

The mean household income in a region served by a chain of clothing stores is $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.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Linear Algebra

Authors: Jim Hefferon

1st Edition

978-0982406212, 0982406215

More Books

Students also viewed these Mathematics questions