The housing market has recovered slowly from the economic crisis of 2008. Recent

Question

The housing market has recovered slowly from the economic crisis of 2008. Recently in one large community randomly sampled 26 bids from potential buyers to estimate the average loss in home value. The sample showed the average loss was $9512 with a standard deviation of $1007, in 2011, the average home in this region of the country lost $8897 in value. Was the community studied by the unusual? Use a lost to decide if the average loss observed was significantly different from the regional average with 0.05 as the P value cutoff level State the hypotheses(The mean home value lost in the community is denoted by mu) H_0 mu = 8897 H_A mu notequalto 8897 H_0 mu greaterthanorequalto 8897 H_A mu

Explanation / Answer

given n = 26

standard deviation = 1007

mean = 8897

x^= 9512

a) option a H0 : u = 8897

HA: u not equal 8897

b) test stastic is (9512-8897) / ( 1007/sqrt26)

=3.114

given alpha is 0.005

95% c,i

df=26-1=25

the pvalue from table is 0.900

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.