In one town, monthly incomes for men with college degrees are found to have a standard deviation of $650. Use a 0.01 significance level to test the claim that for men without college degrees in that town, incomes have a higher standard deviation. A random sample of 22 men without college degrees resulted in incomes with a standard deviation of $913. Apply classical (traditional approach). Round test statistic to nearest hundredth if necessary.Show step1-step3. **Steps for Hypothesis Testing****Step 1:** State null and alternative hypothesis.**Step 2:** Apply p-value and classical (traditional) approach.- **Classical Approach:** Compare critical value (CV) vs test statistic.- **p-value Approach:** Compare p-value vs alpha (level of significance).**Step 3:** State conclusion.**Claim is Alternative Hypothesis:**- *Reject Null Hypothesis:* There is sufficient evidence to conclude that _______.- *Do not reject Null Hypothesis:* There is insufficient evidence to conclude that _______.**Claim is Null Hypothesis:**- *Reject Null Hypothesis:* There is sufficient evidence to reject that _______.- *Do not reject Null Hypothesis:* There is insufficient evidence to reject that _______.

The hypotheses for the test are given below: Null hypothesis: H0: σ=650. Alternative hypothesis: H1:…

Answered: In one town, monthly incomes for men…

MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

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In one town, monthly incomes for men with college degrees are found to have a standard deviation of $650. Use a 0.01 significance level to test the claim that for men without college degrees in that town, incomes have a higher standard deviation. A random sample of 22 men without college degrees resulted in incomes with a standard deviation of $913. Apply classical (traditional approach).

Round test statistic to nearest hundredth if necessary.

Show step1-step3.

**Steps for Hypothesis Testing**

**Step 1:** State null and alternative hypothesis.

**Step 2:** Apply p-value and classical (traditional) approach.

- **Classical Approach:** Compare critical value (CV) vs test statistic.
- **p-value Approach:** Compare p-value vs alpha (level of significance).

**Step 3:** State conclusion.

**Claim is Alternative Hypothesis:**

- *Reject Null Hypothesis:* There is sufficient evidence to conclude that _______.
- *Do not reject Null Hypothesis:* There is insufficient evidence to conclude that _______.

**Claim is Null Hypothesis:**

- *Reject Null Hypothesis:* There is sufficient evidence to reject that _______.
- *Do not reject Null Hypothesis:* There is insufficient evidence to reject that _______.

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