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Hypothesis Testing

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A United Nations report shows the mean family income for Mexican migrants to the United States is $27,000 per year. A FLOC(Farm Labor Organizating Committee) evaluation of 25 Mexican family units reveals a mean to be $30,000 with a sample standard deviation of $10,000. Does this information disagree with the United Nations report? Apply the .01 significance level.

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Solution Summary

Solution depicts the steps in hypothesis testing to check if sample statistics disagree with UN report.

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Please refer attached file for complete solution. Work done with the help of equation writer is missing here.

Solution:

Ho:
H1:
It's a two tailed test.
Sample Mean = =30000
Sample Size=n=25
Sample standard deviation=s=10000
Here sample size is less than 30 ...

Solution provided by:
Lokesh Jain, MSc
Education
  • BEng (Hons) , Birla Institute of Technology and Science, India
  • MSc (Hons) , Birla Institute of Technology and Science, India
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