Question

1. A real estate agent claims that the average price of a condominium in Naples, Florida is not $56,900. A random sample of 16 condos has a mean selling price of $57,374 and a standard deviation of $2500. Test the claim with a level of significance of .

   State the hypotheses.

4 points   

QUESTION 32

1. Identify the critical region.

   		Reject  if
   		Reject  if  or
   		Reject  if  or
   		Reject  if

4 points   

QUESTION 33

1. Compute the test statistic.

4 points   

QUESTION 34

1. Make decision.

   		Reject
   		Reject
   		Fail to Reject
   		Fail to Reject

4 points   

QUESTION 35

1. Interpret the results.

   		Conclude with 95% confidence that the sample mean price of a condominium in Naples is not $56,900.
   		There is not sufficient evidence to say that the sample mean price of a condominium in Naples is not $56,900.
   		Conclude with 95% confidence that the population mean price of a condominium in Naples is not $56,900.
   		There is not sufficient evidence to conclude that the population mean price of a condominium in Naples is not $56,900

Answer 1

1.

Hypothesis:

2.

Level of significance is not visible here. I assume it as 0.05. Please let me know if it is different than 0.05.

Degrees of freedom = n-1 = 16 - 1= 15

Critical value = t0.05/2 , 15 = 2.131

Reject if, test staistic < -2.131 or test staistic > 2.131

3.

Test statistic,

4.

There is not sufficient evidence to conclude that the population mean price of a condominium in Naples is not $56,900