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Name: A real estate agent believes that the average closing cost of purchasi
Uploaded: 2024-03-20T07:07:12.000Z
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Description: A real estate agent believes that the average closing cost of purchasing a new home is $6500 over the purchase price. She selects 40 new home sales at random and finds that the average closing costs are $6600. The standard deviation of the population

MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

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A real estate agent believes that the average closing cost of purchasing a new home is $6500 over the purchase price. She selects 40 new home sales at random and finds that the average closing costs are $6600. The standard deviation of the population is $120. Test her belief at α = 0.05.

Required steps:

1) label all given information

2) state the null and alternative hypothesis and identify the claim 

3) verify that the conditions are met to perform the test

4) sketch the normal distribution (curve) and find the critical regions 

5) compute the test statistic

 6) make a decision to reject or not reject the null hypothesis

 7) summarize the results in a statement

Features Features Normal distribution is characterized by two parameters, mean (µ) and standard deviation (σ). When graphed, the mean represents the center of the bell curve and the graph is perfectly symmetric about the center. The mean, median, and mode are all equal for a normal distribution. The standard deviation measures the data's spread from the center. The higher the standard deviation, the more the data is spread out and the flatter the bell curve looks. Variance is another commonly used measure of the spread of the distribution and is equal to the square of the standard deviation.

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