Question

a statewide real estate company specializes in selling farm property in the state of nebraska. their records indicate that the mean selling time of farm property is 90 days. because of recent drought conditions, they believe that the mean selling time is now greater than 90 days. a statewide survey of 101 farms sold recently revealed that the mean selling time was 94 days, with a standard deviation of 22 days. at the .05 significance level you will test to determine if there has been an increase in selling time.

1-what will be your test statistic?

2-what will be your decision regarding the null hypothesis?

3-what will be your conclusion?

Answer 1

as sample size is large we can use z distribution

1)

test statistic z=1.827

2) as test statisrtic is in rejection region we reject null hypothesis

3)

we have sufficient evidence at 0.05 level to cnclude that  there has been an increase in selling time