Question

One measure of a country’s wealth is the average saving account balance among households. Suppose in 2016 the average saving account balance among households of a country was reported to be $29700. The same survey was performed in 2019 with a random sample of 850 households, and the average balance was found to be $30500. The distribution of saving account balance is right-skewed due to households with high incomes. Assume the standard deviation of this distribution to be $14500. Carry out a significance test at the 0.05 significance level to determine whether the average saving account balance among households in this country has increased since 2016. Be sure to perform all the steps including the hypothesis and a conclusion without any technical terms.

Answer 1