The median U.S. family income is believed to be $63,211. In a survey of families in a particular neighborhood, it was found that out of 40 families surveyed, 10 had incomes below $63,211. At the 0.05 level of significance is there sufficient evidence to conclude that the median income is not $63,211?
Perform these steps.
a. State the hypotheses and identify the claim.
b. Find the critical value(s).
c. Compute the test value.
d. Make the decision.
e. Summarize the results.
Use the traditional method of hypothesis testing unless otherwise specified.