Question

An economist wishes to determine whether there is evidence that mean family income in a community...

  1. An economist wishes to determine whether there is evidence that mean family income in a community does not equal $65,000. What kind of test should be used?
a
  1. either a one-tail or two-tail test could be used with equivalent results
b
  1. a two-tail test
c
  1. a one-tail test
d
  1. a test of proportions
0 0
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Answer #1

Here, the economist wishes to determine whether there is evidence that mean family income in a community does not equal $65,000. Therefore, the alternative hypothesis will be H1 : mean family income in a community does not equal $65,000 , i.e , it will be two sided. The mean income can both be greater than or less than $65000. So, we use a two tailed test here.

Answer : b. a two-tail test

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