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Hypothesis Test

A United Nations report shows the mean family income for Mexican migrants to the United States is $27,150 per year. A FLOC (Farm Labor Organizing Committee) evaluation of 30 Mexican family units reveals a mean to be $29,500 with a sample standard deviation of $11,150. Does this information disagree with the United Nations report? Apply the 0.01 significance level.

(a) State the null hypothesis and the alternate hypothesis.

(b) State the decision rule for 0.01 significance level. (Round your answers to 3 decimal places.)

(c) Compute the value of the test statistic. (Round your answer to 2 decimal places.)

(d) Does this information disagree with the United Nations report? Apply the 0.01 significance level.

Solution Summary

This solution is comprised of a detailed explanation of various aspects of Hypothesis Test as it pertains to the given problem. Supplemented with Interactive EXCEL sheet, this solution provides students with a clear perspective of the calculations and underlying concepts.

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