In terms of resale value, is remodeling a kitchen worth the cost? The following cost and resale figures were reported for 12 cities. Assuming the differences (cost - resale) are normally distributed in the population, test if resale is significantly higher for remodeling a kitchen. Use the t-Test: Paired Two Sample for Means in Excel to perform the test at a 5% level of significance. What is the value of the test statistic as output by Excel? Answer as a number, rounded to 3 decimal places. City Cost Resale Atlanta 25163 20427 Boston 24625 27255 Dallas 23126 22563 Des Moines 12600 22115 Kansas City 24588 23256 Louisville 19267 21887 Portland 20150 24255 Raleigh 22500 19852 Reno 16667 23624 Ridgewood 26875 25885 San Francisco 35333 28999 Tulsa 16292 20836 0.2098

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In terms of resale value, is remodeling a kitchen worth the cost? The following cost and resale figures were reported for 12 cities. Assuming the differences (cost – resale) are normally distributed in the population, test if
resale is significantly higher for remodeling a kitchen. Use the t-Test: Paired Two Sample for Means in Excel to perform the test at a 5% level of significance. What is the value of the test statistic as output by Excel? Answer as a
number, rounded to 3 decimal places.
City
Cost
Resale
Atlanta
25163
20427
Boston
24625 27255
Dallas
23126 22563
Des
Moines
12600
22115
Kansas City 24588 23256
Louisville
19267
21887
Portland
20150
24255
Raleigh
22500
19852
Reno
16667
23624
Ridgewood 26875 25885
San
Francisco
35333
28999
Tulsa
16292 20836
0.2098
QUESTION 10
In terms of resale value, is remodeling a kitchen worth the cost? At the 5% significance level, what can you conclude?
O a. No, the resale value is not significantly higher than the cost of remodeling a kitchen based on the computed p-value of 0.42.
O b. Yes, the resale value is significantly higher than the cost of remodeling a kitchen based on the computed p-value of 0.21.
O. Yes, the resale value is significantly higher than the cost of remodeling a kitchen based on the computed p-value of 0.42.
O d. No, the resale value is not significantly higher than the cost of remodeling a kitchen based on the computed p-value of 0.21.
Transcribed Image Text:In terms of resale value, is remodeling a kitchen worth the cost? The following cost and resale figures were reported for 12 cities. Assuming the differences (cost – resale) are normally distributed in the population, test if resale is significantly higher for remodeling a kitchen. Use the t-Test: Paired Two Sample for Means in Excel to perform the test at a 5% level of significance. What is the value of the test statistic as output by Excel? Answer as a number, rounded to 3 decimal places. City Cost Resale Atlanta 25163 20427 Boston 24625 27255 Dallas 23126 22563 Des Moines 12600 22115 Kansas City 24588 23256 Louisville 19267 21887 Portland 20150 24255 Raleigh 22500 19852 Reno 16667 23624 Ridgewood 26875 25885 San Francisco 35333 28999 Tulsa 16292 20836 0.2098 QUESTION 10 In terms of resale value, is remodeling a kitchen worth the cost? At the 5% significance level, what can you conclude? O a. No, the resale value is not significantly higher than the cost of remodeling a kitchen based on the computed p-value of 0.42. O b. Yes, the resale value is significantly higher than the cost of remodeling a kitchen based on the computed p-value of 0.21. O. Yes, the resale value is significantly higher than the cost of remodeling a kitchen based on the computed p-value of 0.42. O d. No, the resale value is not significantly higher than the cost of remodeling a kitchen based on the computed p-value of 0.21.
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