A state housing department is trying to determine if housing prices in county B are lower than in county A. The department decides to randomly sample recently sold houses in both counties and determine what proportion sold for more than $250,000. Since county A is considerably larger than county B, the housing department chose a larger sample from county A. The results of the data collected are shown below. County A County B Successes 366 Successes 192 Observations 700 Observations 400 p-hat_1 0.523 p-hat_2 0.48 p= Ex: 1.234 Confidence level 90% z-score -1.372 p-value 0.085 1 2 3 County A samples: n₁ = Ex: 9 County B samples: n₂ = Sample proportion for county A samples: p₁ = Ex: 1.234 Sample proportion for county B samples: p2 = -3 -2 z = Ex: 1.234 -1

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### Hypothesis Test for the Difference Between Two Population Proportions

**Overview:**
A state housing department is attempting to ascertain if housing prices in County B are lower than those in County A. The department conducted a random sampling of recently sold houses in both counties, focusing on houses sold for more than $250,000. Given that County A is significantly larger than County B, a larger sample was drawn from County A. The data collected is summarized below.

**Data Summary:**

|                      | County A            | County B         |
|----------------------|--------------------|------------------|
| **Successes**        | 366                | 192              |
| **Observations**     | 700                | 400              |
| **p-hat**            | 0.523              | 0.48             |

**Statistical Analysis:**

- **Confidence Level:** 90%
- **z-score:** -1.372
- **p-value:** 0.085

**Graphical Representation:**

- A normal distribution curve is displayed with a shaded region corresponding to the z-score of -1.372. This shaded area indicates the region of rejection for the hypothesis test at a 90% confidence level.

### Detailed Explanation:

The hypothesis test aims to determine if the proportion of houses sold for more than $250,000 in County B is significantly lower than in County A. The sample data provides the following:

1. **Sample Sizes and Proportions:**
   - County A: 
     - Sample Size (\( n_1 \)) = 700 
     - Sample Proportion (\( \hat{p}_1 \)) = 0.523
   - County B: 
     - Sample Size (\( n_2 \)) = 400 
     - Sample Proportion (\( \hat{p}_2 \)) = 0.48

2. **Hypothesis Testing:**
   - Null Hypothesis (\( H_0 \)): No difference in the proportions (\( p_1 = p_2 \))
   - Alternative Hypothesis (\( H_a \)): Proportion is greater in County A than in County B (\( p_1 > p_2 \))

3. **Analysis and Interpretation:**
   - Given the z-score of -1.372 and the p-value of 0.085 at a 90% confidence level, the p-value exceeds the common significance level
Transcribed Image Text:### Hypothesis Test for the Difference Between Two Population Proportions **Overview:** A state housing department is attempting to ascertain if housing prices in County B are lower than those in County A. The department conducted a random sampling of recently sold houses in both counties, focusing on houses sold for more than $250,000. Given that County A is significantly larger than County B, a larger sample was drawn from County A. The data collected is summarized below. **Data Summary:** | | County A | County B | |----------------------|--------------------|------------------| | **Successes** | 366 | 192 | | **Observations** | 700 | 400 | | **p-hat** | 0.523 | 0.48 | **Statistical Analysis:** - **Confidence Level:** 90% - **z-score:** -1.372 - **p-value:** 0.085 **Graphical Representation:** - A normal distribution curve is displayed with a shaded region corresponding to the z-score of -1.372. This shaded area indicates the region of rejection for the hypothesis test at a 90% confidence level. ### Detailed Explanation: The hypothesis test aims to determine if the proportion of houses sold for more than $250,000 in County B is significantly lower than in County A. The sample data provides the following: 1. **Sample Sizes and Proportions:** - County A: - Sample Size (\( n_1 \)) = 700 - Sample Proportion (\( \hat{p}_1 \)) = 0.523 - County B: - Sample Size (\( n_2 \)) = 400 - Sample Proportion (\( \hat{p}_2 \)) = 0.48 2. **Hypothesis Testing:** - Null Hypothesis (\( H_0 \)): No difference in the proportions (\( p_1 = p_2 \)) - Alternative Hypothesis (\( H_a \)): Proportion is greater in County A than in County B (\( p_1 > p_2 \)) 3. **Analysis and Interpretation:** - Given the z-score of -1.372 and the p-value of 0.085 at a 90% confidence level, the p-value exceeds the common significance level
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