A recent publication states that the average closing cost for purchasing a new home is $7647. A real estate agent believes that the average closing cost is different than $7647. She selects 31 new home purchases and finds that the average closing costs are $7716. The population standard deviation of $268. Help her decide if she is correct by testing her claim at αα=0.10.
Unitary Method
The word “unitary” comes from the word “unit”, which means a single and complete entity. In this method, we find the value of a unit product from the given number of products, and then we solve for the other number of products.
Speed, Time, and Distance
Imagine you and 3 of your friends are planning to go to the playground at 6 in the evening. Your house is one mile away from the playground and one of your friends named Jim must start at 5 pm to reach the playground by walk. The other two friends are 3 miles away.
Profit and Loss
The amount earned or lost on the sale of one or more items is referred to as the profit or loss on that item.
Units and Measurements
Measurements and comparisons are the foundation of science and engineering. We, therefore, need rules that tell us how things are measured and compared. For these measurements and comparisons, we perform certain experiments, and we will need the experiments to set up the devices.
A recent publication states that the average closing cost for purchasing a new home is $7647. A real estate agent believes that the average closing cost is different than $7647. She selects 31 new home purchases and finds that the average closing costs are $7716. The population standard deviation of $268. Help her decide if she is correct by testing her claim at αα=0.10.
The correct hypotheses would be:
- H0:μ≤$7647H0:μ≤$7647
HA:μ>$7647HA:μ>$7647 (claim) - H0:μ≥$7647H0:μ≥$7647
HA:μ<$7647HA:μ<$7647 (claim) - H0:μ=$7647H0:μ=$7647
HA:μ≠$7647HA:μ≠$7647 (claim)
Since the level of significance is 0.10 the critical value is 1.645 and -1.645
The test statistic is: (round to 3 places)
The p-value is: (round to 3 places)
The decision can be made to:
- reject H0H0
- do not reject H0H0
The final conclusion is that:
- There is enough evidence to reject the claim that the average closing cost is different than $7647.
- There is not enough evidence to reject the claim that the average closing cost is different than $7647.
- There is enough evidence to support the claim that the average closing cost is different than $7647.
- There is not enough evidence to support the claim that the average closing cost is different than $7647.
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