Performing a Sign Test In Exercises 7–22, (a) identify the claim and state Ho and Ha, (b) find the critical value, (c) find the test statistic, (d) decide whether to reject or fail to reject the null hypothesis, and (e) interpret the decision in the context of the original claim.
Family Income An accountant claims that the median annual income of a family of four in California is less than $100,000. In a random sample of 66 families of four people, 42 families have annual income of less than $100,000 and 24 families have income of greater than $100,000. At , can you support the accountant’s claim? (Adapted from U.S. Census Bureau)