Maths- Compute the p-value and interpret

Maths- Compute the p-value and interpret

Question

LOCATION

INCOME($1000)

SIZE

YEARS

CREDIT BALANCE($)

Rural

30

2

12

3159

Rural

31

2

4

1864

Rural

37

1

20

2731

Rural

27

1

19

2477

Rural

33

2

12

2514

Rural

44

1

7

2995

Rural

42

2

19

3020

Rural

30

1

14

2583

Rural

48

2

8

3866

Rural

50

2

11

3605

Rural

35

1

11

3121

Rural

27

2

1

2921

Rural

30

2

14

3067

Rural

22

4

16

3074

Suburban

32

4

17

5100

Suburban

50

5

14

4742

Suburban

66

4

10

4764

Suburban

63

4

13

4965

Suburban

62

6

13

5678

Suburban

55

7

15

5301

Suburban

54

6

14

5573

Suburban

67

4

13

5037

Suburban

22

3

18

3579

Suburban

39

2

18

2972

Suburban

54

3

9

3730

Suburban

23

6

18

4127

Suburban

61

2

14

4273

Suburban

46

5

13

4820

Suburban

66

4

20

5149

Urban

54

3

12

4016

Urban

55

2

9

4070

Urban

40

2

7

3348

Urban

51

3

16

4110

Urban

25

3

11

4208

Urban

48

4

16

4219

Urban

65

3

12

4214

Urban

42

6

15

4412

Urban

21

2

18

2448

Urban

37

5

5

4171

Urban

21

3

16

3623

Urban

41

7

18

4828

Urban

34

5

5

3586

Urban

67

5

1

5345

Urban

55

6

16

5370

Urban

52

2

11

3890

Urban

62

3

2

4705

Urban

64

2

6

4157

Urban

29

4

4

3890

Urban

39

4

15

4183

Urban

26

7

17

4603

Your manager has speculated the following:

  1. the average (mean) annual income was less than $50,000,
  2. the true population proportion of customers who live in an urban area exceeds 40%,
  3. the average (mean) number of years lived in the current home is less than 13 years,
  4. the average (mean) credit balance for suburban customers is more than $4300.

Using the sample data, perform the hypothesis test for each of the above situations in order to see if there is evidence to support your manager’s belief in each case a.-d. In each case use the Seven Elements of a Test of Hypothesis, in Section 6.2 of your text book with ? = .05, and explain your conclusion in simple terms. Also be sure to compute the p-value and interpret.