Question

Income East and West of the Mississippi




For a random sample of households in the US, we record annual household income, whether the location is east or west of the Mississippi River, and number of children. We are interested in determining whether there is a difference in average household income between those east of the Mississippi and those west of the Mississippi.



Incorrect answer iconYour answer is incorrect.



(a) State the null and alternative hypotheses. Your answer should be an expression composed of symbols:



Let group 1 be the households east of the Mississippi River and let group 2 be the households west of the Mississippi River.



(b) What statistic(s) from the sample would we use to estimate the difference?



Let group 1 be the households east of the Mississippi River and let group 2 be the households west of the Mississippi River.

Answer 1

Answer:

H0: μ1 = μ2

H1: μ1 ≠ μ2 ;

xbar1 - xbar2

Step-by-step explanation:

The Null hypothesis should state that there is no difference in average household income between those located east and west of the Mississippi

H0: μ1 = μ2

H1: μ1 ≠ μ2

Statistic from the sample that would be used to estimate difference

Statistic refers to the numerical characteristic derived from the sample.

To estimate the difference in the average household income between those located east and west of the Mississippi, we take the sample mean of the two groups

Group 1, East of Mississippi = xbar 1

Group 2, West of Mississippi River = xbar 2

xbar1 - xbar2