Question

A realty company looks at a recent sample of houses that have sold. On testing the null hypothesis that 56% of the houses take more than three months to sell against the hypothesis that more than 56% of the houses take more than three months to sell against the hypothesis that more than .014. Which answer is appropriate?

A. There is a 1.4% chance the null hypothesis is correct.

B. There is a 1.4% chance that 56% of the houses take more than 3 months to sell.

C. If 56% of the houses take more than three months to sell, there is 1.4% chance that a random sample proportion would be as high as or higher than the one they obtained.

D. There is a 96.8% chance that 56% of the houses take more than 3 months to sell.

Answer 1

Answer)

P-value is the probability of obtaining the results as high or higher than the one obtained if null hypothesis is true

Here p-value is 0.014 that is 1.4%

So answer is

C. If 56% of the houses take more than three months to sell, there is 1.4% chance that a random sample proportion would be as high as or higher than the one they obtained.