Problem

32. Identify the value of the TEST STATISTIC used in a hypothesis test of the following claim and sample data: Claim: "The average annual household income in Warren County is $\$ 47,500$." A random sample of 86 households from this county is obtained, and they have an average annual income of $\$ 48,061$ with a standard deviation of $\$ 2,351$. Test the claim at the 0.02 significance level. a. 2.374 b. 2.213 c. 0.239 d. 2.33

Solution

Step 1 :We are given the following values: sample mean (\(\bar{X}\)) is \$48,061, population mean (\(\mu\)) is \$47,500, standard deviation (\(\sigma\)) is \$2,351, and sample size (\(n\)) is 86.

Step 2 :We are asked to find the test statistic (\(Z\)) used in a hypothesis test. The formula for the test statistic in a hypothesis test for a population mean is \(Z = \frac{\bar{X} - \mu}{\sigma / \sqrt{n}}\).

Step 3 :Substitute the given values into the formula: \(Z = \frac{48061 - 47500}{2351 / \sqrt{86}}\).

Step 4 :Solving the above expression, we find that \(Z = 2.213\).

Step 5 :Final Answer: The value of the test statistic used in the hypothesis test is \(\boxed{2.213}\).

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Source: https://solvelyapp.com/problems/13795/

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