A researcher claims that the mean annual cost of raising a child (age 2 and under) by husband-wife families in rural areas is $11,060. In a random sample of husband-wife families in rural areas, the mean annual cost of raising a child (age 2 and under) is $10,920. The sample consists of 800 children. Assume the population standard deviation is $1561. At α = 0.01, is there enough evidence to reject the claim?
(a) Identify the claim and state H0 and Ha,
(b) Find the critical value(s) and identify the rejection region(s),
(c) Find the standardized test statistic z,
(d) Decide whether to reject or fail to reject the null hypothesis,
(e) Interpret the decision in the context of the original claim. If convenient, use technology.
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