QUESTION 2 [8] Suppose that a survey was commissioned by the Ministry of Finance in order to determine the income of loc
Posted: Sun Oct 03, 2021 11:34 am
- Question 2 8 Suppose That A Survey Was Commissioned By The Ministry Of Finance In Order To Determine The Income Of Loc 1 (36.01 KiB) Viewed 109 times
QUESTION 2 [8] Suppose that a survey was commissioned by the Ministry of Finance in order to determine the income of local vendors as part of their project aimed at investigating the feasibility of the presumptive tax. A sample of 30 local vendors was selected and their sample mean monthly income was found to be N$ 7 600. Suppose the monthly incomes of all the local vendors are normally distributed with a standard deviation of N$ 350. a) Construct and interpret the 95% confidence interval estimate for the population mean monthly income of the local vendors? (3) Page 1 b) A representative of the local vendors maintains that the local vendors' average monthly income is N$ 7500 at most. Conduct a hypothesis test at a 5% level of significance to determine the validity of the claim made by the local vendors" representative. Use the p-value approach. (5)