According to a high-profile realtor, houses in the sleepy town of Sun Beach have shown higher appreciation over the past three years than have houses in the bustling town of North Arden. To test the realtor's claim, an economist has found eight recently sold homes in Sun Beach and eight recently sold homes in North Arden that were owned for exactly three years. The following table gives the appreciation (expressed as a percentage increase) for each of the sixteen houses.   Appreciation rates in percent Sun Beach 10.2, 9.7, 12, 10.4, 7.9, 10.9, 9.6, 13.3 North Arden 7.5, 12.8, 5.9, 8.5, 8.1, 9.3, 6.3, 13.4 Assume that the two populations of appreciation rates are normally distributed and that the population variances are equal. Can we conclude, at the  0.05  level of significance, that houses in Sun Beach have higher appreciation over the past three years than houses in North Arden? Perform a one-tailed test.    The null hypothesis: H0:   The alternative hypothesis: H1:   The type of test statistic: (Choose one)ZtChi squareF             The value of the test statistic:(Round to at least three decimal places.)   The critical value at the  0.05  level of significance:(Round to at least three decimal places.)   Can we conclude that houses in Sun Beach have higher appreciation over the past three years than houses in North Arden?   Yes     No

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According to a high-profile realtor, houses in the sleepy town of Sun Beach have shown higher appreciation over the past three years than have houses in the bustling town of North Arden. To test the realtor's claim, an economist has found eight recently sold homes in Sun Beach and eight recently sold homes in North Arden that were owned for exactly three years. The following table gives the appreciation (expressed as a percentage increase) for each of the sixteen houses.

  Appreciation rates in percent
Sun Beach
10.2, 9.7, 12, 10.4, 7.9, 10.9, 9.6, 13.3
North Arden
7.5, 12.8, 5.9, 8.5, 8.1, 9.3, 6.3, 13.4

Assume that the two populations of appreciation rates are normally distributed and that the population variances are equal. Can we conclude, at the 

0.05

 level of significance, that houses in Sun Beach have higher appreciation over the past three years than houses in North Arden?

Perform a one-tailed test. 

 
The null hypothesis:
H0:
 
The alternative hypothesis:
H1:
 
The type of test statistic: (Choose one)ZtChi squareF      
     
The value of the test statistic:
(Round to at least three decimal places.)
 
The critical value at the 
0.05
 level of significance:
(Round to at least three decimal places.)
 
Can we conclude that houses in Sun Beach have higher appreciation over the past three years than houses in North Arden?
 
Yes
 
 
No
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