Question

Residents of neighboring towns have an ongoing disagreement over who lays claim to the higher average price of a​ single-family home. A person in one of these towns obtains a random sample of homes listed for sale with a major local realtor to investigate if there is actually any difference in the average home price. Complete parts a through d below.

Town 1   Town 2
400000   489500
430000   526000
489000   668000
669000   759900
695000   797000
699000   859000
746000   999000
815900   1097000
840000   1255000
929500   1312000
1295000   1395000
1355000   1419000
1399000   1455000
1416000   1477000
1480000   1535000
1520000   1586000
1575000   1623500
1650000   1655000
1695000   1680000
1750000   1860000
1865000   1990000
1995000   1999800
2200000   2058900
2360000   2135000
2435000   2254000
2665000   2395000
2745000   2437000
2830000   2595000
2950000   2759000
2950000   2999500

a)

​a) Using the data​ provided, check the conditions for this test. Which of the following conditions are satisfied for the given​ data? Select all that apply.

-Independent group assumption

-Independence assumption

-Nearly normal condition

-None of the conditions are satisfied.

b) Write the null and alternative hypothesis for the test. Let 1 correspond to town 1 & 2 correspond to town 2.

c)Find the t value?

d)find the p value

Answer 1

​a) Using the data​ provided, check the conditions for this test. Which of the following conditions are satisfied for the given​ data? Select all that apply.

-Independence assumption

-Nearly normal condition

b) Write the null and alternative hypothesis for the test. Let 1 correspond to town 1 & 2 correspond to town 2.

H₀: µ₁ = µ₂

H₁: µ₁ ≠ µ₂

c)Find the t value?

-0.21

d)find the p value

0.831

Town 1	Town 2
15,61,446.67	16,02,370.00	mean
8,01,173.67	6,70,174.64	std. dev.
30	30	n
	56	df
	-40,923.333	difference (Town 1 - Town 2)
	1,90,701.626	standard error of difference
	0	hypothesized difference
	-0.215	t
	.8309	p-value (two-tailed)