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Question 3 The U.S. average for state and local taxes for a family of four is...

Question 3

The U.S. average for state and local taxes for a family of four is $4172. A random sample of 20 families in a northeastern state indicates that they paid an annual amount of $4560 with a standard deviation of $1590. At α = 0.05, is there sufficient evidence to conclude that they pay more than the national average of $4172?

a. Write down the null and alternative hypotheses                                    [2 marks]

b. With a reason, state which is the more suitable test to use here- ‘z’ test or ‘t’ test?  Find the critical value(s) from the suitable tables.                                          [3 marks]

c. Is there sufficient evidence to support the statement                                                [3 marks]

Math   Statistics-And-Probability   
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