Question

# A certain company will purchase the house of any employee who is transferred out of state...

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 Company 330 345 452 270 298 286 537 744 Employee 317 350 473 280 307 283 523 769

(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)

we_______ the null hypothesis
a. reject

b. fail to reject

a)

H0: μd = 0 versus H1: μd ≠ 0.

b)

Reject the null hypothesis if tcalc < -3.50 or tcalc >3.50

c)

test statistic tcalc = -0.98

c-2)

fail to reject

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