.You wish to determine if the average income of Bay Area households is lower than $90,000. A random sample of 50 Bay Area households had an average income of $81,500 with a standard deviation of $38,700. Can you conclude at the 5% significance level that the average household income in the Bay Area is lower than $90,000?
Note: You may wish to use one of the following applets:
Normal Distribution Calculator (Links to an external site.)
t-distribution Calculator
In your write-up include the following steps.
a) State the hypotheses.
b) Justification (Good sampling technique? Are the normality conditions met for the sampling distribution?)
c) What are the shape, center, and spread of the sampling distribution?
d) What is the p-value? Show your work for partial credit.
e) Write the appropriate concluding sentence.