Question

Income East and West of the Mississippi

For a random sample of households in the US, we record annual household income, whether the location is east or west of the Mississippi River, and number of children. We are interested in determining whether there is a difference in average household income between those east of the Mississippi and those west of the Mississippi.

Incorrect answer iconYour answer is incorrect.

(a) State the null and alternative hypotheses. Your answer should be an expression composed of symbols:

Let group 1 be the households east of the Mississippi River and let group 2 be the households west of the Mississippi River.

(b) What statistic(s) from the sample would we use to estimate the difference?

Let group 1 be the households east of the Mississippi River and let group 2 be the households west of the Mississippi River.

Answer 1

(a)

Let the average household income east of the Mississippi be

Let the average household income west of the Mississippi be

Null hypothesis: The average household income between those east of the Mississippi and those west of the Mississippi are same.

Alternate Hypothesis: There is the difference in average household income between those east of the Mississippi and those west of the Mississippi.

It can be mathematically represented as follows

(b)

We need the statistics of the annual income of the households from east of the Mississippi River and west of the Mississippi River.

Let group 1 be the households east of the Mississippi River, the average of group 1 is  

Let group 2 be the households west of the Mississippi River, the average of group 1 is  

Since we are only asking a question about difference in household income of east and west so we don't need statistics on a number of children.

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