Question

A researcher would like to investigate if there is an increase in the mean house price at location XYZ. The housing area was launched in 2017. Suppose that the house price of all standard units was RM550 (‘000) at the time it was launch. The researcher randomly selects 7 standard units for sale in 2020 and the price of the houses is as below:

Unit 1 2 3 4 5 6 7 Price in RM (‘000) in 2020 575 550 560 530 600 595 560 Using the 1% significance level, can he conclude that the mean house price at location XYZ increases after 3 years? Assume that the population of paired differences has a normal distribution.

Answer 1