A district councilor informs the prospective developer of a shopping centre that the average monthly income per household in his district is 2500 Great Britain Pound. Suppose that the household income in the district is approximately normally distributed and that the standard deviation is about 200 Great Britain Pound, based on an earlier study. For a random sample of 25 households, the mean household income is found to be 2400 Great Britain Pound. At a 5% level of significance, can we justify the district councilor’s claim? If not, at what significance level we can justify?

Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
18th Edition
ISBN:9780079039897
Author:Carter
Publisher:Carter
Chapter10: Statistics
Section10.4: Distributions Of Data
Problem 19PFA
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A district councilor informs the prospective developer of a shopping centre that the average monthly income per household in his district is 2500 Great Britain Pound. Suppose that the household income in the district is approximately normally distributed and that the standard deviation is about 200 Great Britain Pound, based on an earlier study. For a random sample of 25 households, the mean household income is found to be 2400 Great Britain Pound. At a 5% level of significance, can we justify the district councilor’s claim? If not, at what significance level we can justify?

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