Question

A certain company will purchase the house of any employee who is transferred out of state and will handle all details of reselling the house. The purchase price is based on two assessments, one assessor being chosen by the employee and one by the company. Based on the sample of eight assessments shown, do the two assessors agree? Use the .05 level of significance.

Assessments of Eight Homes ($ thousands)
Assessed by	Home 1	Home 2	Home 3	Home 4	Home 5	Home 6	Home 7	Home 8
Company	328	350	455	274	290	285	535	743
Employee	319	340	471	282	305	289	529	760

(b) State the decision rule for .05 level of significance. (Round your answers to 2 decimal places. A negative value should be indicated by a minus sign.)

Reject the null hypothesis if t_calc <  or t_calc >  .

(c-1) Find the test statistic t_calc. (Round your answer to 2 decimal places. A negative value should be indicated by a minus sign.)

t_calc            

Answer 1

a)

Hypothesis:

b)

Degrees of freedom = n-1 = 8-1 = 7

Critical value:

                 …………..Using t table

Decision rule:

Reject The Null Hypothesis: If tcal < -2.36 or tcal > 2.36

C)

Computational Table:

Calculation:

Test statistic:

Conclusion:

Test statistic value = -1.08 is lies in the Acceptance region, So, Fail to Reject Ho at 5% level of significance.

We Fail to Reject the null Hypothesis.