SOLUTION: 3. (3 points) Using the 5-step hypothesis testing model test to see if average income of a group is greater than 35,000. Assume ratio level data. Use an alpha of 5%. When data is c

Question 451339: 3. (3 points) Using the 5-step hypothesis testing model test to see if average income of a group is greater than 35,000. Assume ratio level data. Use an alpha of 5%. When data is collected the sample mean is 36,500. The population standard deviation is known to be 5,000 (so a z test can be used).

Answer by stanbon(75887) (Show Source): You can put this solution on YOUR website!
Using the 5-step hypothesis testing model test to see if average income of a group is greater than 35,000. Assume ratio level data. Use an alpha of 5%. When data is collected the sample mean is 36,500. The population standard deviation is known to be 5,000 (so a z test can be used).
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Ho: u <= 35000
Ha: u > 35000 (claim)
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x-bar = 36500
test stat: z(36500) = (36500-35000)/5000 = 0.3
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p-value = P(z > 0.3) = 0.3821
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Since the p-value is greater than 5%, fail to reject Ho.
The test results do not support the claim.
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Cheers,
Stan H.
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