Hypothesis testing
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A study was conducted on the annual incomes of corporate trainers in the state of New York in metropolitan areas having a population less than 100,000 and in metropolitan areas having a population over 500,000. Some sample statistics are:
SAMPLE STATISTIC population <100K Population>500K
Sample Size 45 60
Sample Mean $31,290 $31,330
Sample SD $1,060 $1,900
Test the hypothesis that the annual income of corporate trainers in areas of more then 500,000 are significantly more than those in areas of less than 100,000. Use the 5% level of risk.
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