A Group of Young Businesswomen Wish to Open a High

question 120

Short Answer

A group of young businesswomen wish to open a high fashion boutique in a vacant store but only if the average income of households in the area is at least $25,000. A random sample of 9 households showed the following results.
$$\begin{array} { l l l l } \$ 28,000 & \$ 24,000 & \$ 26,000 & \$ 25,000 \\\$ 23,000 & \$ 27,000 & \$ 26,000 & \$ 22,000 \\\$ 24,000 & &\end{array}$$ Assume the population of incomes is normally distributed.
a. Compute the sample mean and the standard deviation.
b. State the hypotheses for this problem.
c. Compute the test statistic.
d. At 95% confidence using the p-value approach, what is your conclusion?

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Definitions:

Scientific Theory

A well-substantiated explanation of some aspect of the natural world, based on a body of facts that have been repeatedly confirmed through observation and experiment.

Testable Prediction

A hypothesis or a statement that can be verified or refuted through experimentation or observation.

Oxygen Required

A condition where organisms need oxygen to survive, typically referring to aerobic organisms that use oxygen for respiration.

Arctic Tundra

High-latitude Northern Hemisphere biome, where low, cold-tolerant plants survive with only a brief growing season.