Question

6. The average price of homes sold in the U.S. in 2012 was $240,000. A sample of 144 homes sold in Chattanooga in 2012 showed an average price of $246,000. It is known that the standard deviation of the population is $36,000. We are interested in determining whether or not the average price of homes sold in Chattanooga is significantly different than the national average. Let α = .01

a. Verify whether the Central Limit Theorem conditions are met.

b. Develop the null hypothesis and the alternative hypothesis.

c. Calculate the test statistic.

d. Find the critical z value.

e. Draw a picture and state the rejection rule and your conclusion in the context of this problem.

f. What is the p-value for the test statistic

Answer 1

Answer---->>

pogo Souhon given that Average price of homes and in the us in 2012 was $ 240,000. A sample of 104 borrits sold in chattoncoga in 2012 showed an auserroge price of $ 246 000 and population Standard darahon is $21000 from abore information uc pop wation means $240.000 Sample toedin $246000 De sample size 144 6 = popwation Standard deviation = $3600 We want to test Whether or not the average price of hrones Sold in Chattanooga is significantly different than the national at average -0.0) @ Here, Sample Hze = n264 30 We can use central limit theorem at Null and alternative hypothesis, 'Ho: 4 $ 240000 Vs His et $ 240000 Tejt Stah'sha under Ho, X- 3/50 246000 - 240 000 3600 6000 300 7 = 20 2:58 Critical value = 2/2 = 20.0% = 20.005 @ Decision Rude if lal > 2/2 then we reject Ho Here, 121=20 > Quja = 2002 - = 2.58 .. We reject to at 0.0! Jevel of significance

classmate Date Page page 2 Picture: - 4 = 0.005 8, 501005 -2.58 +2.58 if Reject Ho Z 72.58 Zx-258 D-value pvalue = P(12) 7, 20) - 1- P(17)< 20) = 2-2 P(Z320) = 2-2-0. p-value = 0 P-value for this test approximately gero. { Here, eritical value cal cwate from Standard normal distribution table. P(3520) = 1 because 41-33 and elt32 is contain 0.9973 (99.73% region. o.gg 73 4-32 +38