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Average Household Income Analysis

A hypothesis test was conducted to determine if there is a significant difference between average household income and $60,000. The results showed a mean household income of $69,475 with a significant t-value of 9.629 and a p-value less than 0.001, leading to the rejection of the null hypothesis. This indicates that the average household income is significantly higher than $60,000 by $9,475.

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2 views1 page

Average Household Income Analysis

A hypothesis test was conducted to determine if there is a significant difference between average household income and $60,000. The results showed a mean household income of $69,475 with a significant t-value of 9.629 and a p-value less than 0.001, leading to the rejection of the null hypothesis. This indicates that the average household income is significantly higher than $60,000 by $9,475.

Uploaded by

lehuongdlh
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd

Step 1: Hypothesis

H0: There is no significant difference between Average household income and $60k
H1: : There is significant difference between Average household income and $60k
Step 2: Methodology : One sample-test
Step 3: Descriptives Statistics

One-Sample Statistics
Std. Error
N Mean Std. Deviation Mean
Household income in 6400 69.4748 78.71856 .98398
thousands

The average household income of 6400 people is $69475, with the standard deviation is $78719

Step 4: The t-test result:

One-Sample Test
Test Value = 60
95% Confide
Significance the Di
One-Sided Two-Sided Mean
t df p p Difference Lower
Household income in 9.629 6399 <.001 <.001 9.47484 7.5459
thousands

t =9.629
p<0.01
 Reject the H0, accept the H1: There is the significant differnce between Average
household income and $60k
o The average household income is higher than the test value ($60k)
o The mean difference is $9475 and
o It is significant at 0.001 level
The average household income is $9475higher than the test value ($60k), and it is significant at
0.001 level

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