The average income of 15 randomly selected families who reside in a large metropolitan East Coast city is $62,456. The standard deviation is $9652. The average income of 11 randomly selected families who reside in a rural area of the Midwest is $60,213, with a standard deviation of $2009. At α = 0.05, can it be concluded that the families who live in the cities have a higher income than those who live in the rural areas? Assume the population is normally distributed. Required steps: Step 1: Label all given information. Step 2:State the null and alternative hypothesis and identify the claim. Step 3:Verify that the conditions are met to perform the test. Step 4:Sketch the normal distribution and find the critical regions. Step 5:Compute the test statistic. Step 6:Make a decision Step 7:Summarize the results.
The average income of 15 randomly selected families who reside in a large metropolitan East Coast city is $62,456. The standard deviation is $9652. The average income of 11 randomly selected families who reside in a rural area of the Midwest is $60,213, with a standard deviation of $2009. At α = 0.05, can it be concluded that the families who live in the cities have a higher income than those who live in the rural areas? Assume the population is
Required steps:
Step 1: Label all given information.
Step 2:State the null and alternative hypothesis and identify the claim.
Step 3:Verify that the conditions are met to perform the test.
Step 4:Sketch the normal distribution and find the critical regions.
Step 5:Compute the test statistic.
Step 6:Make a decision
Step 7:Summarize the results.
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