A newspaper in a large Midwestern city reported that the National Association of Realtors said that the mean home price last year was $116800. The city housing department feels that this figure is too low. They randomly selected 63 homes sales and obtained a sample mean price of $118,900. Assume that the population standard deviation is $3,700. Using a 5% level of significance, perform a hypothesis test to determine whether the population mean is higher than $116,800. STEP 1. H0: µ ___ _____ $ H1: µ _____ _____ $ STEP 2. This test is (e) left-tailed, (f) two-tailed or (g) right-tailed test. This test is (enter e, f or g) STEP 3. The critical value(s) and test statistic is: Use the following chart to identify the critical value (s) Left-tailed Two-tailed Right tailed α =10% z = -1.28 (A) z=∓1.65z=∓1.65 (B) z =1.28 (C) α =5% z = -1.65 (D) z=∓1.96z=∓1.96 (E) z = 1.65 (F) α =1% z = -2.33 (G) z=∓2.58z=∓2.58 (H)
A newspaper in a large Midwestern city reported that the National Association of Realtors said that the mean home price last year was $116800. The city housing department feels that this figure is too low. They randomly selected 63 homes sales and obtained a sample mean price of $118,900. Assume that the population standard deviation is $3,700. Using a 5% level of significance, perform a hypothesis test to determine whether the population mean is higher than $116,800.
STEP 1. H0: µ ___ _____ $ H1: µ _____ _____ $
STEP 2. This test is (e) left-tailed, (f) two-tailed or (g) right-tailed test.
This test is (enter e, f or g)
STEP 3. The critical value(s) and test statistic is:
Use the following chart to identify the critical value (s)
Left-tailed Two-tailed Right tailed
α =10% z = -1.28 (A) z=∓1.65z=∓1.65 (B) z =1.28 (C)
α =5% z = -1.65 (D) z=∓1.96z=∓1.96 (E) z = 1.65 (F)
α =1% z = -2.33 (G) z=∓2.58z=∓2.58 (H) z = 2.33 (I)
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