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    Computing the Mean, Standard Deviation, and Testing Hypothesis

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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?

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    Solution Summary

    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.