1) The data on housing prices was for the 99 houses in Levittown from our larger real estate data set. The mean appraised value was $172,300 with a standard deviation of $16,921. From this information can you conclude that the mean appraised value is significantly different from $175,000? Explain.
b)Construct a 99% confidence interval for the mean appraised value in Levittown and explain what it represents.
1) Here claim is that mean is different from 175000
So hypothesis is vs
Test statistics is
P value is
As P value is greater than alpha=0.05 we fail to reject the null hypothesis
Hence we do not have sufficient evidence to support the claim that mean is different from 175000
b. z value for 99% CI is 2.576
So Margin of Error is
Hence CI is
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