The amount of income spent on housing is an important component of the cost of l
ID: 3429474 • Letter: T
Question
The amount of income spent on housing is an important component of the cost of living. The total costs of housing for homeowners might include mortgage payments, property taxes, and utility costs. An economist selected a sample of 20 homeowners in New England and then calculated total housing costs as a percent of monthly income, five years ago and now. The information is reported below. Is it reasonable to conclude the percent is less now than five years ago? Use the 0.05 level of significance. (answers to 3 decimal places)
Homeowner
Five Years Ago (%)
Now (%)
Homeowner
Five Years Ago (%)
Now (%)
1
17
10
11
35
32
2
20
39
12
16
32
3
29
37
13
23
21
4
43
27
14
33
12
5
36
12
15
44
40
6
43
41
16
44
42
7
45
24
17
28
22
8
19
26
18
29
19
9
49
28
19
39
35
10
49
26
20
22
12
Hint: compute the difference (positive d means costs greater, negative means costs less. You might find it convenient to transcribe the data to a spreadsheet.
Here
Homeowner
Five Years Ago (%)
Now (%)
Homeowner
Five Years Ago (%)
Now (%)
1
17
10
11
35
32
2
20
39
12
16
32
3
29
37
13
23
21
4
43
27
14
33
12
5
36
12
15
44
40
6
43
41
16
44
42
7
45
24
17
28
22
8
19
26
18
29
19
9
49
28
19
39
35
10
49
26
20
22
12
Explanation / Answer
find the average of then and now and compare
then =663/20=33%
now =540/20=27%
answer=yes
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