The Median Household Income of a Community Is Reported to Be

question 46

Essay

The median household income of a community is reported to be $62,000. A random sample of six households in the community yielded the following incomes. $\$ 42,000 \quad \$ 57,000 \quad \$ 65,000 \quad \$ 69,000 \quad \$ 75,000 \quad \$ 150,000$
Does the sample provide sufficient evidence to refute the reported median household income? Perform a sign test using $\alpha = 0.10$ .

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Definitions:

Market Demand

represents the total demand for a product or service within a market, determined by consumers' willingness and ability to buy at various prices.

Economic Profits

The excess of total revenues over total costs, including both explicit and implicit costs.

Perfectly Competitive

Describes a market structure where numerous small firms compete against each other, and products are considered perfect substitutes.

Average Rate

A mathematical mean or typical value of a set of rates, often used in reference to interest rates, pricing, or other financial statistics.