Question

According to Forbes, the average age of millionaires in the US 10 years ago was 62 years old. Since
then, the number of millionaires in the US has grown to over 17 million. One prevalent belief among
economists is that the average age of millionaires today has decreased from the average age of
millionaires 10 years ago. To investigate this belief, a random sample of 50 millionaires from the US was
selected and their ages were recorded. Here are the summary statistics.
Statistic
n
X
Sx
Min
Q₁
Med
Q3
Max
Value
50
51
10.2
18
38
50.5
72
99
Based on this sample, is there convincing evidence that the true mean age of millionaires in the US is
less than 62 years old? Use a = 0.01. Provide statistical evidence to support your answer.

Answer 1

In the sample, there is convincing evidence that the true mean age of millionaires in the US is less than 62 years old

How to illustrate the sample?

From the information given, the sample mean is 51 and the standard deviation is 10.2. The sample is 50 and the level of significance is 0.01.

The test statistic will be:

= (51 - 62)/(10.20/✓50)

= -7.63

The degree of freedom will be:

= n - 1

= 50 - 1

= 49

Since the p-value is less than 0.05, we will reject the null hypothesis. Therefore, there is a convincing evidence that the true mean age of millionaires in the US is less than 62 years old

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