The median household income of a community is reported to be $62,000. A random sample of six households in the community yielded the following incomes. $\$ 42,000 \quad \$ 57,000 \quad \$ 65,000 \quad \$ 69,000 \quad \$ 75,000 \quad \$ 150,000$
Does the sample provide sufficient evidence to refute the reported median household income? Perform a sign test using $\alpha = 0.10$.

Question

Quizplus · Accepted Answer

The Answer is

\mathrm { H } _ { 0 } : \eta = 62,000

versus

\mathrm { H } _ { \mathrm { a } } : \eta eq 62,000 ; \mathrm { p }

-value

= 2 \cdot \mathrm { P } ( \mathrm { x } \geq 4 ) = 0.688

; Since the

\mathrm { p }

-value is not less than

0.10

, we do not reject the null hypothesis. There is insufficient evidence to refute the reported median income of

\$ 62,000

.

The Median Household Income of a Community Is Reported to Be