A First Course in Probability (10th Edition)
A First Course in Probability (10th Edition)
10th Edition
ISBN: 9780134753119
Author: Sheldon Ross
Publisher: PEARSON
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Can I get some help on problem 1 A and B

Problem 1: According to the website lendingtree.com, the average debt is $5700 per household
in America. The mayor of a small town is wondering if the average debt for people in his town is
lower than the national average. He surveyed an SRS of 28 households and found that the
average debt is $5437 with a standard deviation of $2014. The data does not show any strong
outliers or skewness.
a) Do we have some evidence to suggest that the average debt for people in this town is lower
than the national average? Explain.
b) Perform a hypothesis test at a significance level, alpha = 0.10.
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Transcribed Image Text:Problem 1: According to the website lendingtree.com, the average debt is $5700 per household in America. The mayor of a small town is wondering if the average debt for people in his town is lower than the national average. He surveyed an SRS of 28 households and found that the average debt is $5437 with a standard deviation of $2014. The data does not show any strong outliers or skewness. a) Do we have some evidence to suggest that the average debt for people in this town is lower than the national average? Explain. b) Perform a hypothesis test at a significance level, alpha = 0.10.
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