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Question: Playbill is a magazine distributed around the country to people attending musicals and other theatrical productions. The mean annual household income for the population of Playbill readers is S119.155 (Playbill. January 2006). Assume the standard deviation is σ = $20,700. A San Francisco civic group has asserted that the mean for theater goers in the Bay Area is higher. A sample of 60 theater attendees in the Bay Area showed a sample mean household income of 5126.100.
a. Develop hypotheses that can be used to determine whether the sample data support the conclusion that theater attendees in the Bay Area have a higher mean household income than that for all Playbill readers.
b. What is the p-value based on the sample of 60 theater attendees in the Bay Area?
c. Use a = .01 as the level of significance. What is your conclusion?
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