Question

A recent publication states that the average closing cost for purchasing a new home is $8927. A real estate agent believes that the average closing cost is more than $8927. She selects 40 new home purchases and finds that the average closing costs are $8352. The population standard deviation of $153. Help her decide if she is correct by testing her claim at αα=0.10.

The correct hypotheses would be:

• H0:μ≤$8927H0:μ≤$8927
  HA:μ>$8927HA:μ>$8927 (claim)
• H0:μ≥$8927H0:μ≥$8927
  HA:μ<$8927HA:μ<$8927 (claim)
• H0:μ=$8927H0:μ=$8927
  HA:μ≠$8927HA:μ≠$8927 (claim)

Since the level of significance is 0.10 the critical value is 1.282

The test statistic is: (round to 3 places)

The p-value is: (round to 3 places)

The decision can be made to:

• reject H0H0
• do not reject H0H0

The final conclusion is that:

• There is enough evidence to reject the claim that the average closing cost is more than $8927.
• There is not enough evidence to reject the claim that the average closing cost is more than $8927.
• There is enough evidence to support the claim that the average closing cost is more than $8927.
• There is not enough evidence to support the claim that the average closing cost is more than $8927.

Answer 1