Question

A recent publication states that the average closing cost for purchasing a new home is $8100. A real estate agent believes the average closing cost is less than $8100. She selects 22 new home purchases and finds that the average closing costs are $7739 with a standard deviation of $412. Help her decide if she is correct by testing her claim at αα=0.10.

The correct hypotheses would be:

• H0:μ≤$8100H0:μ≤$8100
  HA:μ>$8100HA:μ>$8100 (claim)
• H0:μ≥$8100H0:μ≥$8100
  HA:μ<$8100HA:μ<$8100 (claim)
• H0:μ=$8100H0:μ=$8100
  HA:μ≠$8100HA:μ≠$8100 (claim)

Since the level of significance is 0.10 the critical value is -1.323

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 less than $8100.
• There is not enough evidence to reject the claim that the average closing cost is less than $8100.
• There is enough evidence to support the claim that the average closing cost is less than $8100.
• There is not enough evidence to support the claim that the average closing cost is less than $8100.

Answer 1