Question

For the past several years, the mean number of people in a household has been declining....

For the past several years, the mean number of people in a household has been declining. A social scientist believes that in a certain large city, the mean number of people per household is less than 2.5. To investigate this, she takes a simple random sample of 250 households in the city, and finds that the sample mean number of people is 2.3 with a sample standard deviation of 1.3. Can you conclude that the mean number of people per household is less than 2.5?

a. State the null and alternate hypotheses.

b. Should we perform a z-test or a t-test?

c. Compute the value of the test statistic.

d. Do you reject H0 at the a = 0.01 level?

e. State a conclusion.

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