Question

# A recent publication states that the average closing cost for purchasing a new home is \$8100....

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.

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