Question

4.53. The following table shows the assessed values and the selling prices of eight houses, constituting a random sample of all the houses sold recently in a metropoli- tan area: Assessed value (thousands) (of dollars) 170.3 202.0 162.5 174.8 157.9 181.6 210.4 188.0 Selling price (thousands) (of dollars) 214.4 269.3 206.2 225.0 199.8 232.1 274.2 243.5 (a) Fit a least squares line that will enable us to predict the selling price of a house in that metropolitan area in terms of its assessed value. (b) Test the null hypothesis B tive hypothesis B> 1.30 at the 0.05 level of significance. 1.30 against the alterna-

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Answer 1

iven clauta Assessed valuc thasanc) Lof dollars) l70-3 2o2. 0 Selling pvie L thousands) Lof dollars) ly.y 2 b9.3 2 06.2 129.g 232) 188.0 243.5 From the ingomati as ollows, on the given value are mM

My84715.88 143 ool, 63 and y4、 The n and ltr native hypothesis is, Lev of Signli tantt, ompute the test stats H Tha ttst Statistil s 戈)/ ompute tha polloving quantiHes as S, 홑긔

= 1333, u7875 幻 AI 53 56-59375 (5336.59375- § /-4927メ3557-9))25) Substitute the vsuus in the boeoula as pollows, 6x 2383. M3 87S Z. 38b5g

Ly Therepore, the test Statishu 5 3. uM5 Degrees 아 freedom Thi uial ualu at Sv. level of sig ipltante or o righi tald st bwith degree Dtuision rul RWe the nuli hypo thesis if tel. 943 Lonlusion since thealulated valut oy tha lexi Stohsti s greata than the tritl valuc t the nu hypothesis at sy.lev el of Thare pore Lontlude thal th gventlrn Signifi Lant