Question

Let all real estate sales in the region in 2008 be Population 1 and all real estate sales in the region in 2010 be Population 2.

population 1 (2008): total sales= 533, foreclosure sales= 123

population 2 (2010): total sales=570, foreclosure sales=149

1)construct point estimates pˆ1 and pˆ2 of the proportions p1 and p2 of all real estate sales in this region in 2008 and 2010 that were foreclosure sales.

Construct a point estimate of p1−p2.

2)Use the sample data to construct a 90% confidence for p1−p2. Test, at the 10% level of significance, the hypothesis that the proportion of real estate sales in the region in 2010 that were foreclosure sales was greater than the proportion of real estate sales in the region in 2008 that were foreclosure sales. (The default is that the proportions were the same.)

Answer 1