In: Statistics and Probability
6) I took a random sample of people from the 2000 U.S.
Census and recorded the incomes. The sample size was n = 30 (with
replacement). The average of the sample was $23606 and the standard
deviation of the sample was $24757. Answer these questions using
the statistics that I found from my sample.
a) Find a 95% confidence interval for the mean income of the
population.
b) What assumptions must you make in order for the 95% confidence
level to be correct?
c) Your confidence interval is of the form (LB, UB) where LB and UB
are both numbers. Suppose I'm going to take a new sample of size
30. Can I conclude that the probability the average of my sample is
between LB and UB is 95%? (where LB and UB are the values you found
in your interval.) Why or why not?
d)A politician claims that the mean income of US residents (in
2000) was $25,000. Test this claim with an appropriate hypothesis
test using a significance level of 5%.
e) For part (d), what's the smallest significance level you could
have used so that the result would be that you would reject the
null hypothesis?