Question

Chapter 10

If a random sample of 30 homes south of Center Street in Provo has a mean selling price of $145,325 and a standard deviation of $4850, and a random sample of 26 homes north of Center Street has a mean selling price of $148,675 and a standard deviation of $5600, can you conclude that there is a significant difference between the selling price of homes in these two areas of Provo at the 0.05 level? Assume normality.

(a) Find t. (Give your answer correct to two decimal places.)

(ii) Find the p-value. (Give your answer correct to four decimal places.)

Answer 1

For unknown sigma we use t distribution.. here we use 2 sample t test..

Test statistic t=( x1-x2)/ sp × sqrt( (1/n1)+(1/n2))

And find p value at df= n1+n2-2 in 2 tail