A sample of 100 households is selected from a village in a small country with a...

A sample of 100 households is selected from a village in a small country with a mean household income of $27,200 and standard deviation of $8,400. This seems to be higher than the average for the whole country which is $25,000 and with a standard deviation of $6,500. Is the income of this small village higher on average than the rest of the country? Calculate and show the main steps for this problem.

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Expert Solution

Ho is rejected at 5% los, we conclude that the claim is true that the the income of this small village higher on average than the rest of the country

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