An economist wants to determine whether people are financially stable.
Massachusetts residents earn higher wages than the rest of the country.
This is country. Suppose a person is
The countries are normally distributed N($41,000, $3000). It is this:
The population standard is $41,000.
The variance is $300,000.
The economist took a sample of 25 people.
Massachusetts. The average salary in Massachusetts is $44,000. What better way to apply for a job?
The Economist Has Statistically Significant Evidence to Support the Claim
Massachusetts earns more than Massachusetts.
What about the rest? Assume Alpha = 0.05
1. Identify the alternative and null hypotheses
2. Align letters
3. The test statistic
4 can be calculated. Compute p-values
5. Choose the option to reject or not reject zeros.
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