**Hypothesis Testing for Average Closing Costs**A recent publication states that the average closing cost for purchasing a new home is $7238. A real estate agent believes that the average closing cost is different from $7238. She selects 42 new home purchases and finds that the average closing costs are $8416. The population standard deviation is $500. Help her decide if she is correct by testing her claim at α=0.05.**The correct hypotheses would be:**- $ H_0: \mu = 7238 $- $ H_A: \mu \neq 7238 $ (claim)**Since the level of significance is 0.05 the critical value is 1.96 and -1.96.****The test statistic is:** [_____] (round to 3 places)**The p-value is:** [_____] (round to 3 places)**The decision can be made to:**- ( ) reject $ H_0 $- ( ) do not reject $ H_0 $**The final conclusion is that:**- ( ) There is enough evidence to reject the claim that the average closing cost is different than $7238.- ( ) There is not enough evidence to reject the claim that the average closing cost is different than $7238.- ( ) There is enough evidence to support the claim that the average closing cost is different than $7238.- ( ) There is not enough evidence to support the claim that the average closing cost is different than $7238.

The claim that need to be tested is that whether the average closing cost is different from $7238 or…

A recent publication states that the average closing cost for purchasing a new home is $7238. A real estate agent believes that the average closing cost is different than $7238. She selects 42 new home purchases and finds that the average closing costs are $8416. The population standard deviation of $500. Help her decide if she is correct by testing her claim at a=0.05.

A recent publication states that the average closing cost for purchasing a new home is $7238. A real estate agent believes that the average closing cost is different than $7238. She selects 42 new home purchases and finds that the average closing costs are $8416. The population standard deviation of $500. Help her decide if she is correct by testing her claim at a=0.05.

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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Concept explainers

Confidence Intervals

When we calculate intervals in probability and statistics, it can be simply termed as finding out a confidence interval. The confidence interval is usually calculated from the data set which is observed. The value of the parameter that needs to be calculated is present here only.

Question

**Hypothesis Testing for Average Closing Costs**

A recent publication states that the average closing cost for purchasing a new home is $7238. A real estate agent believes that the average closing cost is different from $7238. She selects 42 new home purchases and finds that the average closing costs are $8416. The population standard deviation is $500. Help her decide if she is correct by testing her claim at α=0.05.

**The correct hypotheses would be:**

- $ H_0: \mu = 7238 $
- $ H_A: \mu \neq 7238 $ (claim)

**Since the level of significance is 0.05 the critical value is 1.96 and -1.96.**

**The test statistic is:** [_____] (round to 3 places)

**The p-value is:** [_____] (round to 3 places)

**The decision can be made to:**

- ( ) reject $ H_0 $
- ( ) do not reject $ H_0 $

**The final conclusion is that:**

- ( ) There is enough evidence to reject the claim that the average closing cost is different than $7238.
- ( ) There is not enough evidence to reject the claim that the average closing cost is different than $7238.
- ( ) There is enough evidence to support the claim that the average closing cost is different than $7238.
- ( ) There is not enough evidence to support the claim that the average closing cost is different than $7238.

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