hi, I need some help with this question
A 95% confidence interval was found for the difference in mean family
annual income, between an outer suburb and a rural townn. Use this CI
to carryout a test of Ho: Us=Ur+25 against Ho: Us#Ur+25, ie that
suburb incomes are $25,000 per annum greater than rural incomes. use
the six steps solution
Two Sample T-Test and Confidence Interval
Two sample T for rural vs suburb
N Mean StDev SE Mean
rural 40 88675 9846 1557
suburb 80 122913 18511 2070
95% CI for mu rural - mu suburb: ( -39366, -29109)
T-Test mu rural = mu suburb (vs not =): T = -13.22 P = 0.0000 DF =
117
(this is what I've done so far)
1)Ho: Us-Ur=25 choice &=0.5
2)test statistic: use CI method 95%CI(-39366, -29109)
3)Assumptions + conditions
- well defined parameter and binary variable
- a reprensentive variable
-independce
-large no cond is satisfied
4)p-value since hypothesised value Ho: Us-Ur=25 is ouside 95%CI
(-39366, -29109)
th pvalue is <0.05
5) reject Ho if P < & so reject Ho since p<0.05
6)I'm not sure what the conclusion evidence is
I'm not sure I have done all the steps right (especially 4, 5 and 6)
can someone please help
thankyou
Anthony
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