Even before the Ownership Society programs of Presidents Cli

Even before the \\Ownership Society\" programs of Presidents Clinton and Bush, the federal
government was heavily involved in the housing market. In a study just prior to the foreclosure
crisis starting in 2008, the Urban Institute started about 80% of the estimated $200 billion
of federal housing subsidies consisted of tax breaks. Samples indicated that federal housing
benefits average $8,268 for those with incomes $200,000 and $500,000 and only $365 for those
with incomes of $40,000 to $50,000. The respective standard deviations were $2,100 and $150.
They were obtained from sample sizes of 150.

1. the statistical test obtained is 45.9741 and p value is 0.0000. Test whether the benefits
to the high income group are at least $7,500 more than the benefits to the low income
group using = 0:05. Make sure to state the null and the alternative hypotheses. Assume
bene ts are normally distributed for both income groups.

Solution