Question

A United Nations report shows the mean family income for Mexican migrants to the United States is $26,450 per year. A FLOC (Farm Labor Organizing Committee) evaluation of 23 Mexican family units reveals a mean to be $37,190 with a sample standard deviation of $10,700. Does this information disagree with the United Nations report? Apply the 0.01 significance level.

a.	State the null hypothesis and the alternate hypothesis.

H0: μ =
H1: μ ≠

b.	State the decision rule for .01 significance level. (Negative amounts should be indicated by a minus sign. Round your answers to 3 decimal places.)

  Reject H₀ if t is not between   and

c.	Compute the value of the test statistic. (Round your answer to 3 decimal places.)

Value of the test statistic

d.	Does this information disagree with the United Nations report? Apply the 0.01 significance level.

    (Click to select)  Do not reject Ho  Reject Ho  . This data  (Click to select)  does not contradict  contradicts  the report.

Answer 1

a)

H0: = 26450

Ha: 26450

b)

df = n- 1 = 23 - 1 = 22

t critical values at 0.01 level with 22 df = -2.819 , 2.819

Decision rule = Reject H0 if t is not between -2.819 and 2.819

c)

Test statistics

t = ( - ) / (S / sqrt(n) )

= ( 37190 - 26450) / (10700 / sqrt(23) )

= 4.814

d)

Reject H0, this data contradicts the report.