3. A researcher believes that community B has a lower income than community A. Forty people...

3. A researcher believes that community B has a lower income than community A. Forty people are surveyed in each of the two communities regarding their income. In place A, the mean among the 40 individuals is 62 (given in thousands; you can ignore the ‘thousands’ and just use ‘61’), and the variance is 95; in place B, the mean among the 40 surveyed is 59, and the variance is 100. Test the null hypothesis that the two communities have equal incomes. Use alpha = 0.05. State the null and alternative hypotheses, find the test statistic, compare it with the critical value, make a decision, and find the p-value.

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Expert Solution

H0: The community B has not lower income than community A

H1: The community B has lower income than community A

Let the los be alpha = 5%

Thus we conclude that the community B has not lower income than community A

orchestra answered 2 years ago

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