Home values tend to increase over time under normal conditions, but the recession of 2008 and 2009 has reportedly caused the sales price of existing homes to fall nationwide (Businessweek, March 9, 2009). You would like to see if the data support this conclusion. The file HomePrices contains data on 30 existing home sales in 2006 and 40 existing home sales in 2009. a) Provide a point estimate of the difference between the population mean prices for the two years. b) Develop a 99% confidence interval estimate of the difference between the resale prices of houses in 2006 and 2009. c) Would you feel justified in concluding that resale prices of existing homes have declined from 2006 to 2009? Why or why not? 2006 ($1000s) 2009 ($1000s) 213100 155400 226200 189800 239100 200800 214300 280400 161700 213200 181200 181100 228600 117400 222100 130000 228900 170000 235800 149600 219400 146200 238800 54400 301800 213800 264200 186000 320200 182100 315000 180000 118900 215700 172400 164200 137500 95300 212800 239500 175400 207200 311400 188200 296900 169400 292500 185600 287700 177000 246500 178000 195600 161200 155300 249200 152400 146400 211200 99800 246700 173500 138100 112200 137500 147900 179000 116200 197500 164200

Home values tend to increase over time under normal conditions, but the recession of 2008 and 2009 has reportedly caused the sales price of existing homes to fall nationwide (Businessweek, March 9, 2009). You would like to see if the data support this conclusion. The file HomePrices contains data on 30 existing home sales in 2006 and 40 existing home sales in 2009. a) Provide a point estimate of the difference between the population mean prices for the two years. b) Develop a 99% confidence interval estimate of the difference between the resale prices of houses in 2006 and 2009. c) Would you feel justified in concluding that resale prices of existing homes have declined from 2006 to 2009? Why or why not? 2006 ($1000s) 2009 ($1000s) 213100 155400 226200 189800 239100 200800 214300 280400 161700 213200 181200 181100 228600 117400 222100 130000 228900 170000 235800 149600 219400 146200 238800 54400 301800 213800 264200 186000 320200 182100 315000 180000 118900 215700 172400 164200 137500 95300 212800 239500 175400 207200 311400 188200 296900 169400 292500 185600 287700 177000 246500 178000 195600 161200 155300 249200 152400 146400 211200 99800 246700 173500 138100 112200 137500 147900 179000 116200 197500 164200

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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Related questions

Question

2006 ($1000s) 2009 ($1000s)
213100 155400
226200 189800
239100 200800
214300 280400
161700 213200
181200 181100
228600 117400
222100 130000
228900 170000
235800 149600
219400 146200
238800 54400
301800 213800
264200 186000
320200 182100
315000 180000
118900 215700
172400 164200
137500 95300
212800 239500
175400 207200
311400 188200
296900 169400
292500 185600
287700 177000
246500 178000
195600 161200
155300 249200
152400 146400
211200 99800
246700
173500
138100
112200
137500
147900
179000
116200
197500
164200

Definition Definition Measure of central tendency that is the average of a given data set. The mean value is evaluated as the quotient of the sum of all observations by the sample size. The mean, in contrast to a median, is affected by extreme values. Very large or very small values can distract the mean from the center of the data. Arithmetic mean: The most common type of mean is the arithmetic mean. It is evaluated using the formula: μ = 1 N ∑ i = 1 N x i Other types of means are the geometric mean, logarithmic mean, and harmonic mean. Geometric mean: The nth root of the product of n observations from a data set is defined as the geometric mean of the set: G = x 1 x 2 ... x n n Logarithmic mean: The difference of the natural logarithms of the two numbers, divided by the difference between the numbers is the logarithmic mean of the two numbers. The logarithmic mean is used particularly in heat transfer and mass transfer. ln x 2 − ln x 1 x 2 − x 1 Harmonic mean: The inverse of the arithmetic mean of the inverses of all the numbers in a data set is the harmonic mean of the data. 1 1 x 1 + 1 x 2 + ...

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