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For the United States, the mean monthly Internet bill is $32.79 per household (CNBC, January 18, 2006). A sample of 50 households in a southern state showed a sample mean of $30.63. Use a population standard deviation of ? = $5:60:
a. Formulate hypotheses for a test to determine whether the sample data support the conclusion that the mean monthly Internet bill in the southern state is less than the national mean of $32.79.
b. What is the value of the test statistic?
c. What is the p-value?
d. At ? = :01, what is your conclusion?
Derive the following equilibrium for the IS-LM model:
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