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Hypothesis Testing

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


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 Summary

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