Question

The average per capita income for Wisconsin is reported to be $37,314, and for South Dakota it is $37,375—almost the same thing. A random sample of 50 workers from each state indicated the following sample statistics. At α = 0.05, can we conclude a difference in means of the personal incomes?

Wisconsin: n= 50, Mean= 40275, Population standard deviation= 10500
South Dakota: n= 50, Mean= 38750, Population standard deviation= 12500

Answer 1

Explanation:

We can conduct a two-sample t-test to determine if there is a significant difference in means of the personal incomes between Wisconsin and South Dakota. The calculated t-value needs to be compared to the critical t-value to make a conclusion on the hypothesis.