Question

To conduct a one-sided hypothesis test of the claim that houses located on corner lots (corner lot houses) have higher average selling prices than those located on non-corner lots, which of the following alternative hypotheses should be used? The average selling price of a corner-lot house is higher than it is commonly believed to be. The average selling price of a corner-lot house is higher than the average selling price of all houses. The average selling price of a corner-lot house is the same as the average selling price of a house not located on a corner lot. The average selling price of a corner-lot house is higher than the average selling price of a house not located on a comer lot. 960 Corner lot Non-corner Lot House Price House Price (in Shundreds) (in $hundreds) 2150 2050 1999 2080 1800 2150 1375 1900 1250 1560 1110 1450 1139 1449 995 1270 900 1235 1695 1170 1553 1180 1300 1155 1020 995 1020 975 925 975 725 1299 860 1250 1250 1080 922 1050 899 835 850 805 876 750 890 773 870 1295 700 975 720 700 720 2100 749 600 731 1844 670 699 2150 1330 1599 1129 1350 1050 1239 1000 1030 1125 940 1100 1049 955 934 875 889 855 810 1200 799 759 755 750 730 729 710 690 670 619 939 820 780 770 620 540 1070 725 660 580 1580 1160 1109 1050 1045 1020 975 950 920 945 872 870 869

Answer 1

Claim :

Houses located on corner lots(corner-lot houses) have higher average selling price than those located on non-corner lots

The alternative hypothesis should be used : H_a

Ans:

The average selling price of a corner-lot house is higher than the average selling price of a house not located on a corner lot

The null and alternative hypotheses are two mutually exclusive statements about a population. A hypothesis test uses sample data to determine whether to reject the null hypothesis.

Null hypothesis (H₀)

The null hypothesis states that a population parameter (such as the mean, the standard deviation, and so on) is equal to a hypothesized value. The null hypothesis is often an initial claim that is based on previous analyses or specialized knowledge.

Alternative Hypothesis (H₁)

The alternative hypothesis states that a population parameter is smaller, greater, or different than the hypothesized value in the null hypothesis. The alternative hypothesis is what you might believe to be true or hope to prove true.

One-sided and two-sided hypotheses

The alternative hypothesis can be either one-sided or two sided.

Two-sided

Use a two-sided alternative hypothesis (also known as a nondirectional hypothesis) to determine whether the population parameter is either greater than or less than the hypothesized value. A two-sided test can detect when the population parameter differs in either direction, but has less power than a one-sided test.

One-sided

Use a one-sided alternative hypothesis (also known as a directional hypothesis) to determine whether the population parameter differs from the hypothesized value in a specific direction. You can specify the direction to be either greater than or less than the hypothesized value. A one-sided test has greater power than a two-sided test, but it cannot detect whether the population parameter differs in the opposite direction.