As a part of his studies, William gathered data on the annual housing sales for a sample of 20 realtors. He works through the testing procedure: H0:μ≥187; Ha:μ<187 α=0.01 The test statistic is t0=x¯−μ0sn√=−3.323. The critical value is −t0.01=−2.539. At the 1% significance level, does the data provide sufficient evidence to conclude that the mean annual housing sales is less than 187 houses? Select the correct answer below: We should reject the null hypothesis because t0tα. So, at the 1% significance level, the data provide sufficient evidence to conclude that the average annual housing sales is less than 187 houses. We should not reject the null hypothesis because t0>tα. So, at the 1% significance level, the data do not provide sufficient evidence to conclude that the average annual housing sales is less than 187 houses.
As a part of his studies, William gathered data on the annual housing sales for a sample of 20 realtors. He works through the testing procedure:
- H0:μ≥187; Ha:μ<187
- α=0.01
- The test statistic is t0=x¯−μ0sn√=−3.323.
- The critical value is −t0.01=−2.539.
Select the correct answer below:
We should reject the null hypothesis because t0<tα. So, at the 1% significance level, the data provide sufficient evidence to conclude that the average annual housing sales is less than 187 houses.
We should not reject the null hypothesis because t0<tα. So, at the 1% significance level, the data do not provide sufficient evidence to conclude that the average annual housing sales is less than 187 houses.
We should reject the null hypothesis because t0>tα. So, at the 1% significance level, the data provide sufficient evidence to conclude that the average annual housing sales is less than 187 houses.
We should not reject the null hypothesis because t0>tα. So, at the 1% significance level, the data do not provide sufficient evidence to conclude that the average annual housing sales is less than 187 houses.
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