Question

The final answer should be:

6.5.7 Suppose that incomes (measured in thousands of dollars) above $20K can be assumed to be Pareto(a), where α > 0 is unknown, for a particular population. A sample of 20 is taken from the population and the following data obtained. 21.265 20.857 21.090 20.047 20.019 32.509 21.622 20.693 20.109 23.182 21.199 20.035 20.084 20.038 22.054 20.190 20.488 20.456 20.066 20.302 Construct an approximate 0.95-confidence interval for a. Assess the hypothesis that the mean income in this population is $25K. 6.5.7 â ± (â//n)2(1+7)/2 = (0.18123, 0.46403) as a 0.95-confidence interval, and this does not contain α-1 + 1/25-1.04.

Answer 1

Answer:

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