Question

According to the National Association of Home Builders, the average cost of building a home in the Northeast is $117.91 per square foot. A random sample of 38 new homes indicated that the mean cost was $123.87 and the standard deviation was $17. Can it be concluded that the mean cost differs from $117.91, using the 0.10 level of significance? Part 1 State the hypotheses and identify the claim with the correct hypothesis. H M - $ 117.91 not claim Lin H: $117.91 claim This hypothesis test is a two-tailed fest. Part 2 Find the critical value(s). Enter the values in ascending order and round the answer to two decimal places. Critical values are -1.69 and 1.69 Part 3 out of 5 Compute the test value. Always round z score values to two decimal places. CHECK

Answer 1

part 1 and 2 are correct..i am doing part 3

given data are:-

sample size(n) = 39

sample mean ($\bar{x}$) = 123.87

population mean ($\mu$) = 117.91

sample sd(s)= 17

the test statistic be-

T-H s/n 123.87 – 117.91 - 17/38 2.16

[ it is actually the t score, as here you do not know the population sd, you can't calculate the z score]

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