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 .01 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|
(a) Choose the appropriate hypotheses. Assume d = company assessed value – employee assessed value.
a. H0: μd = 0 versus H1: μd ≠ 0.
b. H0: μd ≠ 0 versus H1: μd = 0.
(b) State the decision rule for .01 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 tcalc < _________or tcalc > __________ .
(c-1) Find the test statistic tcalc. (Round your answer to 2 decimal places. A negative value should be indicated by a minus sign.)
(c-2) What is your conclusion?
we_______ the null hypothesis
b. fail to reject
H0: μd = 0 versus H1: μd ≠ 0.
Reject the null hypothesis if tcalc < -3.50 or tcalc >3.50
test statistic tcalc = -0.98
fail to reject
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