A real estate agent believes that the mean home price in the northern part of a county is higher than price in the southern part of the county and would like to test the claim. A simple random sample of prices is taken from each region. The results are shown below. Southern Northern Mean 154.889 167.833 Variance 354.458 521.912 Observations Pooled Variance Hypothesized Mean Difference 18 18 438.185 df 34 p= Ex: 1.234 t Stat P(T<=t) one-tail t Critical one-tail P(T<=t) two-tail t Critical two-tail 1.885 0.036 1.691 0.072 2.032 -3 -2 2 3 Confidence Level 95% t = Ex: 1.234 n = Ex: 9 Degrees of freedom: df Point estimate for the southern part of the county: 1 Ex: 1.234 Point estimate for the northern part of the county: 2

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