b) State the decision rule for .01 significance level. ( Negative amounts should

Question

b) State the decision rule for .01 significance level. (Negative amounts should be indicated by a minus sign. Round your answers to 3 decimal places.)

Reject H0 if t is not between  and

A United Nations report shows the mean family income for Mexican migrants to the United States is $28,540 per year. A FLOC (Farm Labor Organizing Committee) evaluation of 28 Mexican family units reveals a mean to be $34,120 with a sample standard deviation of $10,050. Does this information disagree with the United Nations report? Apply the 0.01 significance level. a. State the null hypothesis and the alternate hypothesis. 28540 28540 O b. State the decision rule for .01 significance level. (Negative amounts should be indicated by a minus sign. Round your answers to 3 decimal places.) Reject Ho if t is not between -0.498 o and 0.498 c. Compute the value of the test statistic. (Round your answer to 3 decimal places.) 2.937 alue of the test statistic d. Does this information disagree with the United Nations report? Apply the 0.01 significance level. I Reject Ho V 2. This data contradicts the report

Explanation / Answer

Data:     

n = 28    

= 28540    

s = 10050    

x-bar = 34120    

Hypotheses:    

Ho: = 28540    

Ha: 28540    

Decision Rule:    

= 0.01    

Degrees of freedom = 28 - 1 = 27

Lower Critical t- score = -2.770682946   

Upper Critical t- score = 2.770682946   

Reject Ho if |t| > 2.770682946   

Test Statistic:    

SE = s/n = 10050/28 = 1899.271477   

t = (x-bar - )/SE = (34120 - 28540)/1899.27147687137 = 2.937969

p- value = 0.006685618    

(b) -2.771 and 2.771

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