A local social service agency is asked to determine areas in the greatest need of social support. The neighbourhoods that are identified as being in need of assistance will qualify for the city's new employment assistance. The determination will be based on whether a neighbourhood's income is below the monthly mean household income of $1,365. The preferred level of significance for this analysis is alpha = .01
The first area examined is the Southside community. A random sample of 98 households produces a mean of $1,240 with a standard deviation of $580.
a. Does the Southside qualify for the employment assistance program?
b. Provide the city council with a recommended course of action based on this result.