Question

BigDeal Real Estate surveyed prices per square foot in the valley and foothills of Hoke-a-mo, Utah. Based on BD's Data below, are prices per square foot equal at x)=0.01?

Valley	Foothills
109	103
116	182
106	184
157	133
147	243
105	158
173	247
153	221
137	175
110	197

a) The critical value is 2.977 since this is a two-tail scenario. The test statistic is 2.239. Since the test statistic < the critical value, the test statistic does not lie in the area of rejection. Do not reject the null hypothesis. The prices per square foot are equal at alpha= .01Question options:

b) The critical value is 2.977 since this is a two-tail scenario. The test statistic is 1.513. Since the test statistic < the critical value, the test statistic does not lie in the area of rejection. Do not reject the null hypothesis. The prices per square foot are equal at alpha= .01

c) The critical value is 2.977 since this is a two-tail scenario. The test statistic is 1.936. Since the test statistic < the critical value, the test statistic does not lie in the area of rejection. Do not reject the null hypothesis. The prices per square foot are equal at alpha= .01

d) The critical value is 2.977 since this is a two-tail scenario. The test statistic is 3.207. Since the test statistic > the critical value, the test statistic does lie in the area of rejection. Reject the null hypothesis. The prices per square foot are not equal at alpha= .01

Answer 1

------I HAVE USED MINITAB TO FIND THE VALUE OF TEST STATISTIC------

STEPS--

ENTER THE DATA----STAT-----BASIC STATISTIC-----2 SAMPLE T TEST-----

OUTPUT IS-

Since critical value is = 2.977 here

since, test statistic is greater than the critical value, the test statistic does lie in the area of rejection region. Then we reject the null hypothesis. The prices per square foot are not equal at alpha=0.01

option d is correct.