Question

Table 1 Independent Sample Test of Means for Office Space Comparison of Buildings within One Mile of the Freeway and Not-Within One Mile of Freeway 99% Confidence Sig. Mean Std. Error Interval of the Difference Calculated T df 12-tailed) Difference Difference Lower Upper 1.221 30 232 195.506 160.159 -635.942 244.930 0 5 Assessed Value 30 337 5.047 5.169 9.168 19.262 976 1. John Goodest and Bill Roostaman are wondering how the assessed value of office spaces is determined. First, is it possible that office buildings that are within one mile of the freeway are assessed higher than buildings that are more than one mile from the freeway? Using the results in Table 1, Test the hypothesis at.01 Level of Significance that there is no significant difference in Assessed Values and Age between buildings that are within One Mile of the Freeway and those that are more than One Mile from the Freeway (50 Points). a. State the Null and Alternate Hypotheses (Present the mathematical statement as well the common language) b. What is the Critical Z value for the Hypothesis Test, assuming a large sample? c. State the Decision Rule and state your conclusion meaning in

Answer 1

1.

Null hypothesis HV0: Mean assessed values difference between buildings that are within one miles of the Freeway and those that are more than one mile from the Freeway is 0. That is $\mu_1 - \mu_2 = 0$

Alternative hypothesis HVa: Mean assessed values difference between buildings that are within one miles of the Freeway and those that are more than one mile from the Freeway is not 0. That is $\mu_1 - \mu_2 \ne 0$

Null hypothesis HA0: Mean age difference between buildings that are within one miles of the Freeway and those that are more than one mile from the Freeway is 0. That is $\mu_{a1} - \mu_{a2} = 0$

Alternative hypothesis HAa: Mean age difference between buildings that are within one miles of the Freeway and those that are more than one mile from the Freeway is not 0. That is $\mu_{a1} - \mu_{a2} \ne 0$

2.

For 99% confidence interval (0.01 significance level), the critical Z values is 2.576

3.

P-value for the null hypothesis HV0 is 0.232 (Sig 2-tailed)

Since, p-value is greater than 0.01 significance level, we fail to reject null hypothesis HV0 and conclude that there is no strong evidence that mean assessed values difference between buildings that are within one miles of the Freeway and those that are more than one mile from the Freeway is not 0.

P-value for the null hypothesis HA0 is 0.337 (Sig 2-tailed)

Since, p-value is greater than 0.01 significance level, we fail to reject null hypothesis HV0 and conclude that there is no strong evidence that mean age difference between buildings that are within one miles of the Freeway and those that are more than one mile from the Freeway is not 0.