Question

A random sample of 30 Georgia residents provided a mean income of $46,000 earned last year. Another sample from Ohio residents showed a mean income of $43,000 during the same period. At the population level, using Georgia as population 1 and Ohio as population 2, did Georgia residents earn a higher income compared to the Ohio ones last year?

If the p-value is 0.015, at α=.05, what is your conclusion?

Question 4 options:

	a) Georgia income was higher than Ohio income last year
	b) Georgia income was neither higher nor lower than the one of Ohio last year
	c) Georgia income was not higher than Ohio income last year

Answer 1

Solution:

The correct answer is:

a) Georgia income was higher than Ohio income last year

Explanation:

The null and alternative hypotheses are:

The p-value is 0.015 and the significance level is 0.05.

Since the p-value is less than the significance level, we, therefore, reject the null hypothesis and conclude that the Georgia income was higher than Ohio income last year.