Question

Tiffany, a mortgage officer is interested in studying down payments when purchasing single family homes in a small town. In the past, the average amount of money for a down

payment on a single-family home in a small town is 10,000 dollars with standard deviation of 2,500 dollars. Tiffany would like to test to determine if the average amount of money for a

down payment on a single-family home in the small town is less than 10,000 dollars. Tiffany

collects a random sample of 42 single-family home purchases and records down the average

payment of $9,500. Is there convincing evidence at 0.01 significance level that the average amount of money for a down payment on a single-family home in the small town is less

than 10,000 dollars?

Hypothesis:

Significance Level:

Test Statistics:

P-value:

Conclusion:

Answer 1