In 2003, the average annual family income in the NCR was Php 310,860.00 with a standard deviation of Php 176, 870.00. With the increased prices of commodities, it is hoped that the mean annual family income has also increased. A survey is conducted to verify this contention. A random sample of 320 families has a mean annual income of Php 325,255.00. Is the sample result sufficient to demonstrate that the mean annual family income in NCR is significantly higher than Php310,860 at the 5% level of significance? a) State your null and alternative hypothesis b) Choose the appropriate test statistic c) Critical values and corresponding critical region d) Compute the test statistic e) Decision and conclusion

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