A mayor running for re-election claims that during his term, average municipal taxes have fallen by $175. A conscientious statistician wants to test this claim. He surveys 40 of his neighbors and finds that their taxes decreased (in dollars) as follows: 191, 188, 164, 180, 175, 185, 182, 171, 158, 158, 188, 161, 154, 175, 166, 175, 170, 190, 180, 174, 187, 156, 179, 159, 170, 169, 182, 159, 167, 174, 175, 163, 168, 177, 173, 178, 170, 158, 165, 172 The statistician assumes a population standard deviation of $11

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A mayor running for re-election claims that during his term, average municipal taxes have fallen by $175. A conscientious statistician wants to test this claim. He surveys 40 of his neighbors and finds that their taxes decreased (in dollars) as follows:

191, 188, 164, 180, 175, 185, 182, 171, 158, 158, 188, 161, 154, 175, 166, 175, 170, 190, 180, 174, 187, 156, 179, 159, 170, 169, 182, 159, 167, 174, 175, 163, 168, 177, 173, 178, 170, 158, 165, 172

The statistician assumes a population standard deviation of $11. Do you think the statistician should reject the mayor's claim? Why or why not?

Step 1: State the hypothesis.

p or u    = _______

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 ____    with distribution mean_____  and distribution standard deviation .

Step 3: Assuming the Claim is True, Find the Probability of Obtaining the Point Estimate.

P(p or x, <= or >= ____)=P( z or t, <= or>= _____)=


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