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Continuing with problem D.9, based on a random sample of 1000 members, suppose that you find the sample mean income, to be $900.
a. Given that µ = $1000, what is the probability of obtaining such a sample mean value?
b. Based on the sample mean, establish a 95% confidence interval for µ and find out if this confidence interval includes µ = $1000. If it does not, what conclusions would you draw?
c. Using the test of significance approach, decide whether you want to accept or reject the hypothesis that µ = $1000. Which test did you use and why? |
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