Question

1. The World Health Organization claims that global per capita income is $9,119. A sample of 100 families in Burkina Faso found a per capita income of $8,862, with a standard deviation of $401. Is there significant evidence of a lower per capita income in Burkina Faso? Conduct the appropriate test at a .05 level of significance.

Step 1.           Set up hypotheses and determine level of significance

                       

Step 2.            Select the appropriate test statistic

                                             

Step 3.            Set up decision rule

                                   

Step 4.            Compute the test statistic

                       

Step 5.            Conclusion

                       

Answer 1

To Test :-

H0 :-  

H1 :-

Level of significance

Test Statistic :-


t = -6.409

Test Criteria :-
Reject null hypothesis if


Result :- Reject null hypothesis

There is sufficient evidence to support the claim that a lower per capita income in Burkina Faso.