Question

A real estate agent has claimed that the average home prices in Lindville (L) and Jamesville (J) are equal. Suppose that a random sample of 18 Lindville homes resulted in a sample mean price of $235,000 with a sample standard deviation of $22,000. A random sample of 12 Jamesville homes resulted in a sample mean price of $245,000 with a sample standard deviation of $24,000. Test the real estate agent's claim at the 5% significance level. Assume that population variances are equal and the home prices are normally distributed in each town.

a. Select the correct symbol to replace "?" in the null hypothesis H₀: μ_L − μ_J? 0

	<
	=
	≤
	>
	≥

b. Select the correct symbol to replace "?" in the alternative hypothesis H_a: μ_L − μ_J? 0

	>
	≠
	≤
	<
	≥

c. Compute the value of the test statistic used to test the real estate agent's claim.

Do not round any intermediate calculations. Round your answer to two decimal places. Enter a "−" sign directly before a negative answer.

Test statistic =

d. Determine the critical values needed to test the real estate agent's claim.

Enter your critical values to three decimal places. Enter a "−" sign directly before a negative answer.

Lower critical value =

Upper critical value = .

e. Based on the above results, choose the appropriate initial conclusion.

	Reject the null hypothesis.
	Do not reject the null hypothesis.

f. Based on the claim and your initial conclusion, choose the appropriate final conclusion.

	Do not reject the real estate agent's claim.
	Reject the real estate agent's claim.

Answer 1