Your manager has speculated the following
guru2009our manager has speculated the following:
- the average (mean) annual income was less than $50,000,
- the true population proportion of customers who live in an urban area exceeds 40%,
- the average (mean) number of years lived in the current home is less than 13 years,
- the average (mean) credit balance for suburban customers is more than $4300.
- Using the sample data, perform the hypothesis test for each of the above situations in order to see if there is evidence to support your manager’s belief in each case a.-d. In each case use the Seven Elements of a Test of Hypothesis, in Section 6.2 of your text book with ? = .05, and explain your conclusion in simple terms. Also be sure to compute the p-value and interpret.
- Follow this up with computing 95% confidence intervals for each of the variables described in a.-d., and again interpreting these intervals.
LOCATION
INCOME($1000)
SIZE
YEARS
CREDIT BALANCE($)
Rural
30
2
12
3159
Rural
31
2
4
1864
Rural
37
1
20
2731
Rural
27
1
19
2477
Rural
33
2
12
2514
Rural
44
1
7
2995
Rural
42
2
19
3020
Rural
30
1
14
2583
Rural
48
2
8
3866
Rural
50
2
11
3605
Rural
35
1
11
3121
Rural
27
2
1
2921
Rural
30
2
14
3067
Rural
22
4
16
3074
Suburban
32
4
17
5100
Suburban
50
5
14
4742
Suburban
66
4
10
4764
Suburban
63
4
13
4965
Suburban
62
6
13
5678
Suburban
55
7
15
5301
Suburban
54
6
14
5573
Suburban
67
4
13
5037
Suburban
22
3
18
3579
Suburban
39
2
18
2972
Suburban
54
3
9
3730
Suburban
23
6
18
4127
Suburban
61
2
14
4273
Suburban
46
5
13
4820
Suburban
66
4
20
5149
Urban
54
3
12
4016
Urban
55
2
9
4070
Urban
40
2
7
3348
Urban
51
3
16
4110
Urban
25
3
11
4208
Urban
48
4
16
4219
Urban
65
3
12
4214
Urban
42
6
15
4412
Urban
21
2
18
2448
Urban
37
5
5
4171
Urban
21
3
16
3623
Urban
41
7
18
4828
Urban
34
5
5
3586
Urban
67
5
1
5345
Urban
55
6
16
5370
Urban
52
2
11
3890
Urban
62
3
2
4705
Urban
64
2
6
4157
Urban
29
4
4
3890
Urban
39
4
15
4183
Urban
26
7
17
4603
- 8 years ago
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