A mayor running for re-election claims that during his term, average municipal taxes have fallen by $125. A conscientious statistician wants to test this claim. She surveys 38 of her neighbors and finds that their taxes decreased (in dollars) as follows: 102, 129, 94, 182, 126, 146, 145, 154, 158, 142, 73, 198, 151, 115, 177, 136, 159, 89, 105, 145, 69, 154, 140, 107, 127, 172, 69, 158, 77, 82, 192, 116, 53, 134, 98, 97, 180, 146 The statistician assumes a population standard deviation of $36. Do you think the statistician should reject the mayor's claim? Why or why not?

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Chapter10: Statistics
Section10.6: Summarizing Categorical Data
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A mayor running for re-election claims that during his term, average municipal taxes have fallen by $125. A
conscientious statistician wants to test this claim. She surveys 38 of her neighbors and finds that their taxes
decreased (in dollars) as follows:
102, 129, 94, 182, 126, 146, 145, 154, 158, 142, 73, 198, 151, 115, 177, 136, 159, 89, 105, 145, 69, 154,
140, 107, 127, 172, 69, 158, 77, 82, 192, 116, 53, 134, 98, 97, 180, 146
The statistician assumes a population standard deviation of $36. Do you think the statistician should reject
the mayor's claim? Why or why not?
Step 1: State the hypothesis.
? V
%3D
Step 2: Determine the Features of the Distribution of Point Estimates Using the Central Limit Theorem.
By the Central Limit Theorem, we know that the point estimates are Select an answer
with
distribution mean
and distribution standard deviation
Step 3: Assuming the Claim is True, Find the Probability of Obtaining the Point Estimate.
P(? v? v
= P( ? v ? v
Step 4: Make a Conclusion About the Claim.
What do you think? Based on the probability you calculated in step 3 of obtaining the point estimate, would
you reject the claim? Think about your answer to this step yourself; this step is not graded.
Transcribed Image Text:A mayor running for re-election claims that during his term, average municipal taxes have fallen by $125. A conscientious statistician wants to test this claim. She surveys 38 of her neighbors and finds that their taxes decreased (in dollars) as follows: 102, 129, 94, 182, 126, 146, 145, 154, 158, 142, 73, 198, 151, 115, 177, 136, 159, 89, 105, 145, 69, 154, 140, 107, 127, 172, 69, 158, 77, 82, 192, 116, 53, 134, 98, 97, 180, 146 The statistician assumes a population standard deviation of $36. Do you think the statistician should reject the mayor's claim? Why or why not? Step 1: State the hypothesis. ? V %3D Step 2: Determine the Features of the Distribution of Point Estimates Using the Central Limit Theorem. By the Central Limit Theorem, we know that the point estimates are Select an answer with distribution mean and distribution standard deviation Step 3: Assuming the Claim is True, Find the Probability of Obtaining the Point Estimate. P(? v? v = P( ? v ? v Step 4: Make a Conclusion About the Claim. What do you think? Based on the probability you calculated in step 3 of obtaining the point estimate, would you reject the claim? Think about your answer to this step yourself; this step is not graded.
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