# Hypothesis Test United Nations Report – Solution Guide

A United Nations report shows the mean family income for Mexican migrants to the United States is \$26,700 per year. A FLOC (Farm Labor Organizing Committee) evaluation of 21 Mexican family units reveals a mean to be \$28,450 with a sample standard deviation of \$10,850. Does this information disagree with the United Nations report? Apply the 0.01 significance level.

### State the null hypothesis and the alternate hypothesis.

In this test, we are simply stating that mean from the FLOC report will either equal the mean from the United Nations report.

• H0: μ = \$26,700
• H1: μ ≠ \$26,700

### State the decision rule for .01 significance level.

Reject H0  if t is not between -2.33 and 2.33

### Compute the value of the test statistic.

Excel is used to calculate the test statistic.

The computed value of the test statistic is 0.74

### Does this information disagree with the United Nations report? Apply the 0.01 significance level.

Do not reject Ho. This data does not contradict the report.

• Student: Not Provided
• Textbook: Statistical, Techniques in Business & Economics
• Course: QNT 351