A United Nations report shows the mean family income for Mexican migrants to the
ID: 3150200 • Letter: A
Question
A United Nations report shows the mean family income for Mexican migrants to the United States is $26,580 per year. A FLOC (Farm Labor Organizing Committee) evaluation of 26 Mexican family units reveals a mean to be $38,900 with a sample standard deviation of $11,054. Does this information disagree with the United Nations report? Apply the 0.01 significance level.
State the decision rule for .01 significance level. (Negative amounts should be indicated by a minus sign. Round your answers to 3 decimal places.)
A United Nations report shows the mean family income for Mexican migrants to the United States is $26,580 per year. A FLOC (Farm Labor Organizing Committee) evaluation of 26 Mexican family units reveals a mean to be $38,900 with a sample standard deviation of $11,054. Does this information disagree with the United Nations report? Apply the 0.01 significance level.
Explanation / Answer
A)
Formulating the null and alternative hypotheses,
Ho: u = 26580
Ha: u =/ 26580 [ANSWER]
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b)
As we can see, this is a two tailed test.
Thus, getting the critical t,
df = n - 1 = 25
tcrit = +/- 2.787435814
Hence, reject Ho if t is not between -2.787 and 2.787. [ANSWER]
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c)
Getting the test statistic, as
X = sample mean = 38900
uo = hypothesized mean = 26580
n = sample size = 26
s = standard deviation = 11054
Thus, t = (X - uo) * sqrt(n) / s = 5.683003475 = 5.68 [ANSWER]
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d)
As |t| > 2.787, we REJECT THE NULL HYPOTHESIS.
YES, THIS INFORMATION DISAGREES WITH THE UNITED NATIONS REPORT. [ANSWER]
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