Question

The average price of homes sold in the U.S. in the past year was $220,000. A...

The average price of homes sold in the U.S. in the past year was $220,000. A random sample of 81 homes sold this year showed an average price of $210,000. It is known that the standard deviation of the population is $36,000. At level of significance (a) 0.05, conduct the hypothesis test to determine if there has been a significant decrease in the average price homes. With Ha: µ < 220,000 and test statistic Z = -2.50, what is the p-value?

Math   Statistics-And-Probability   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

NOTE: There is no need of alpha in calculating p-value. However if p-value is less than alpha, we reject the null hypothesis.

Here p-value is 0.0062 and alpha is 0.05, i.e, p-value < alpha, so we reject the null hypothesis at 0.05 level of significance and conclude that there has been a significant decrease in the average price homes in comparison to past year.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
The average price of homes sold in the U.S. in 2013 was $240,000. A sample of...
The average price of homes sold in the U.S. in 2013 was $240,000. A sample of 150 homes sold in Chattanooga in 2013 showed an average price of $236,000. It is known that the standard deviation of the population (σ) is $36,000. We are interested in determining whether the average price of homes sold in Chattanooga is significantly less than the national average. Use a significance level of α equal to 0.05.
A sample of n=67 sold homes from a population of 11,500 sold homes in the past...
A sample of n=67 sold homes from a population of 11,500 sold homes in the past year, found an average sale price to be $153,500 with a σn-1 = $55,175. What is the value for the standard deviation of this sample? What percentage of homes sold within + $10,000 of the average sale price? What percentage chance will the average sale price of homes be > $140,000? What percentage chance will the average sales price be < $150,000?
The Bureau of Labor Statistics reported that the average yearly income of dentists in the year...
The Bureau of Labor Statistics reported that the average yearly income of dentists in the year 2018 was $110,000. Asample of 81 dentists, which was taken in 2019, showed an average yearly income of $120,000. Assume the standarddeviation of the population of dentists in 2019 is $36,000. We want to test to determine if there has been a significantdifference in the average yearly income of dentists. Following the steps for hypothesis testing, conduct this hypothesis test at the 5% level...
The U.S. Census Bureau reported that the average area of U.S. homes built in 2018 was...
The U.S. Census Bureau reported that the average area of U.S. homes built in 2018 was 2,623. square feet. A simple random sample of 38 homes, had an average of 2,715 square feet, with a standard deviation of 249 square feet. Assume the population is approximately normally distributed. Test the claim that the average square feet of homes built in 2019 is more than 2018 by conducting a hypothesis test at the .01 significant level?
in 2018, homes in East Baton Rouge Parish sold for an average of $239,000. You take...
in 2018, homes in East Baton Rouge Parish sold for an average of $239,000. You take a random sample of homes in ascension parish and find the average home sale price was $246,000 in 2018. You test the hypothesis that that the mean of the home prices from ascension parish is higher than the EBR mean. Suppose a P value for the test is 0.045. At the 0.01 level of significance your conclusion is: a) there is evidence that the...
Has the mean price of corn changed over the past year? The mean price of corn...
Has the mean price of corn changed over the past year? The mean price of corn sold in April 2017 was $2.00 per bushel. A sample of 22 transactions for the sale of corn in April 2018 has a mean $2.08 and standard deviation $0.20. The price for such transactions is known to be normally-distributed. Test using 5% significance. Define the population parameter. (a) µ = mean price of corn in April 2017 (b) µ = mean price of corn...
The Bureau of Labor Statistics reported that the average yearly income of dentists in the year...
The Bureau of Labor Statistics reported that the average yearly income of dentists in the year 2018 was $110,000. A sample of 81 dentists, which was taken in 2019, showed an average yearly income of $120,000. Assume the standard deviation of the population of dentists in 2019 is $36,000. We want to test to determine if there has been a significant difference in the average yearly income of dentists. Following the steps for hypothesis testing, conduct this hypothesis test at...
A used car dealer says that the true average price of a two-year-old sedan (in average...
A used car dealer says that the true average price of a two-year-old sedan (in average condition) is less than $25000. To test the statement, you take a simple random sample of 45 cars and find the sample to have an average of $20800 with a standard deviation of $6500. Test the statement at 1% significance. Round to the fourth. H0 :Select an answer x̄ p̂ μ p  Select an answer = < > ≠   HA :Select an answer x̄ p̂...
Q1) Last year the government made a claim that the average income of the American people...
Q1) Last year the government made a claim that the average income of the American people was $34100 However, a sample of 25 people taken recently showed an average income of $34,665 with a standard deviation of $3200. Is the government’s estimate too low? Conduct a significance test to see if the true mean is more than the reported average. Use α=0.05. (a) State the null and alternative hypothesis. (b) Calculate the test statistic. (c) Calculate the p-value. Round to...
According to a recent survey of the 23​,000 funeral homes of a certain​ nation, funeral homes...
According to a recent survey of the 23​,000 funeral homes of a certain​ nation, funeral homes collected an average o ​$ 6,500 per​ full-service funeral last year. A random sample of 36 funeral homes reported revenue data for the current year. Among other​ measures, each reported its average fee for a​ full-service funeral. These data​ (in thousands of​ dollars) are shown in the accompanying table. Complete parts a through c below. 7.3 9.4 5.1 8.6 7.8 6.2 6.1 8.8 6.5...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT