document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1181976>Question 1181976</A>: <I><SPAN STYLE=\"word-break: break-all;\"> The average household income for a recent year in Fiji was $30,000. Five years earlier the average household income was $24,500. Assume sample sizes of 34 were used and the population standard deviations of both samples were $5928. At 5% level of significance is there enough evidence to believe that the average household income has increased? </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #811940 by </B><A HREF=/tutors/aboutme.mpl?userid=Boreal><B>Boreal(15235)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=Boreal><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/cgi-bin/show-face.mpl?user=Boreal><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=811940\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> This is a z-test, and assuming normality and random samples, the critical value will be z>1.645 with a one-way test.<BR>\n" );
document.write( "z=(30000-24500)/5928/sqrt(34)<BR>\n" );
document.write( "=5500*sqrt(34)/5928<BR>\n" );
document.write( "=5.41<BR>\n" );
document.write( "strongly reject the null hypothesis and conclude the average household income has increased.<BR>\n" );
document.write( "p-value << 0.0001 (about 6 x 10^(-8))<BR>\n" );
document.write( " </SPAN>\n" );
document.write( "</TD></TR></TABLE>\n" );