Question

QUESTION 1

1. Exhibit 1
   A government program provided incentives for home buyers in form of a partial financing of the down payment. Various analysts expected that this program would raise sales and the prices in the slumping housing market. A researcher collected the following information to compare the average home prices and check the claim if the home prices are the same before and after the program.

   	Before	After
   Average Home Price ('000)	$175	$185
   Population Std. Dev. ('000)	20	25
   Sample size	50	50

2. QUESTION 5

3. Refer to Exhibit 1 in question 1 to answer this question.

   The test statistic is

   		-1.45
   		+1.45
   		-2.21
   		+2.21

4. 2 points   

   QUESTION 6

5. Refer to Exhibit 1 in question 1 to answer this question.

   At a level of significance of 0.01, the null hypothesis should

   		be rejected.
   		not be rejected.
   		need more information to answer the question

6. 2 points   

   QUESTION 7

7. Refer to Exhibit 1 in question 1 to answer this question.

   We conclude

   		that with 99% confidence the average home prices before and after the program differ significantly.
   		that with 99% confidence the average home prices before and after the program do not differ significantly.
   		that the government should increase the amount of incentives.
   		need more information to answer the question.

Answer 1