A United Nations report shows the mean family income for Mexican migrants to the

Question

A United Nations report shows the mean family income for Mexican migrants to the United States is $28,120 per year. A FLOC (Farm Labor Organizing Committee) evaluation of 27 Mexican family units reveals a mean to be $39,750 with a sample standard deviation of $12,765. 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: = H1: 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.

Explanation / Answer

Given n=27, xbar=39750, s=12765

(a) State the null hypothesis and the alternate hypothesis.

H0: µ =28120
H1: µ not equal to 28120

(b) State the decision rule for .01 significance level. (Round your answers to 3 decimal places.)

Given a=0.01, the critical values are |Z(0.005)|=2.5758 or -2.5758 (check standard normal table)

Reject H0 if t is not between _-2.575_____ and __2.575______.

(c) Compute the value of the test statistic. (Round your answer to 2 decimal places.)

Value of the test statistic

Z=(xbar-µ )/(s/n)

=(39750-28120)/(12765/sqrt(27))

= 4.73

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

Reject Ho. This data does not contradict the report.

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