Question

# A recent publication states that the average closing cost for purchasing a new home is \$8500....

A recent publication states that the average closing cost for purchasing a new home is \$8500. A real estate agent believes that the average closing cost is more than \$8500. She selects 31 new home purchases and finds that the average closing costs are \$8029. The population standard deviation of \$361. Help her decide if she is correct by testing her claim at αα=0.10.

The correct hypotheses would be:

• H0:μ≤\$8500H0:μ≤\$8500
HA:μ>\$8500HA:μ>\$8500 (claim)
• H0:μ≥\$8500H0:μ≥\$8500
HA:μ<\$8500HA:μ<\$8500 (claim)
• H0:μ=\$8500H0:μ=\$8500
HA:μ≠\$8500HA:μ≠\$8500 (claim)

Since the level of significance is 0.10 the critical value is 1.282

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 more than \$8500.
• There is not enough evidence to reject the claim that the average closing cost is more than \$8500.
• There is enough evidence to support the claim that the average closing cost is more than \$8500.
• There is not enough evidence to support the claim that the average closing cost is more than \$8500.

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