Question

A United Nations report shows the mean family income for Mexican migrants to the United States is $28,540 per year. A FLOC (Farm Labor Organizing Committee) evaluation of 26 Mexican family units reveals a mean to be $30,500 with a sample standard deviation of $10,500. Does this information disagree with the United Nations report? Apply the 0.01 significance level.

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

H0: μ =
H1: μ ≠

(b)	State the decision rule for .01 significance level. (Negative amounts should be indicated by a minus sign. Round your answers to 3 decimal places.)

Reject H0 if t is not between  and

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

Value of the test statistic

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

Reject Ho Do not reject Ho? This data contradicts does not contradict the report?

Answer 1

a)
Below are the null and alternative Hypothesis,
Null Hypothesis, H0: μ = 28540
Alternative Hypothesis, Ha: μ ≠ 28540

b)

Rejection Region
This is two tailed test, for α = 0.01 and df = 25
Critical value of t are -2.787 and 2.787.
Hence reject H0 if t < -2.787 and t > 2.787

c)

Test statistic,
t = (xbar - mu)/(s/sqrt(n))
t = (30500 - 28540)/(10500/sqrt(26))
t = 0.95

d)

Do not reject Ho This data contradicts does not contradict the report