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A group of young businesswomen wish to open a high fashion boutique in a vacant store, but only if the average income of households in the area is at least $25,000. A random sample of 9 households showed the following results:
$28,000 $23,000 $24,000 $24,000 $27,000 $26,000 $26,000 $25,000 $22,000
(Assume the population of incomes is normally distributed)
-Compute the sample mean and the standard deviation
-State the hypotheses for this problem
-Compute the test statistic
-At 95% confidence, using the p-value approach, what is your conclusion?
This solution shows how to compute the sample mean and standard deviation of a given data set. Additionally, this solution states a hypothesis for the problem and computes the test statistics.