Question 10.218

11. A family is trying to decide where to move. The choice has come down to Suburb A and Suburb B. A random sample of 40 households in Suburb A had a mean income of $50,000 and a standard deviation of $15,000. A random sample of 36 households in Suburb B had a mean income of $65,000 and a standard deviation of $20,000.

  1. Test, at level of significance , whether the population mean income in Suburb A is less than the population mean income in Suburb B.
  2. Construct and interpret a 95% confidence interval for .