Question

Your professor preformed a hypothesis test comparing the mean appraised values in Levittown (sample 2) and Farmington (sample 1). He obtained the following results:

Null hypothesis: Difference of means = 0
Sample 1:
 n = 60, mean = 191330, s.d. = 32603
 standard error of mean = 4209.03
 95% confidence interval for mean: 182908 to 199752
 
Sample 2:
 n = 99, mean = 172340, s.d. = 16921
 standard error of mean = 1700.62
 95% confidence interval for mean: 168965 to 175715
 
Test statistic:
t(157) = (191330 - 172340)/3934.01 = 4.82713
Two-tailed p-value = 3.259e-006
(one-tailed = 1.629e-006)

1) What would be the alternate hypothesis for which you would use the two-tailed p-value?

2) Given the alternate hypothesis you suggest, what do you conclude from this output?

Answer 1

1) What would be the alternate hypothesis for which you would use the two-tailed p-value?

Given,

Null hypothesis: Difference of mean = 0

And test is Two Tailed,

Therefore,

Alternative hypothesis: Difference of mean ≠ 0.

2) Given the alternate hypothesis you suggest, what do you conclude from this output?

Given, P-Value: 3.259e-006 = 0.000003259

The P-Value is less than 0.05 then reject null hypothesis.

So, Difference of mean ≠ 0 is correct.

Conclusion:

Comparing the mean appraised values in Levittown (sample 2) and Farmington (sample 1) are not same.