18. Claim: Neighborhood A has the same average household income as neighborhood B. Test at α...

18. Claim: Neighborhood A has the same average household income as neighborhood B. Test at α = 0.01

Data: A sample of 15 households from neighborhood A have an average income of $54,750 and a standard deviation of $3500. A sample of 9 households from neighborhood B have an average income of $53,200 and a standard deviation of $3825. Assume that the population standard deviations are NOT the same

(a) Are these data statistically significant evidence to support the claim?

(b) Are these data statistically significant evidence to refute the claim?

Solutions

Expert Solution

Let denote the average income of households from neighborhood A and neighborhood B respectively.

Assuming that the population standard deviations are NOT the same,

a) No, these data are not statistically significant evidence to support the claim.

b) Yes, these data are statistically significant evidence to refute the claim.

orchestra answered 1 year ago

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