Problem Set #3 J) The amount of income spent on housing is an important component of the cost of living. The total costs of housing for homeowners might include mortgages payments, property taxes, and utility costs (water, heat, electricity). An economist selected a sample of Inland Empire, California, homeowners and calculated housing costs as a percent of monthly income, 5 years ago and now. The information is reported below. Is it reasonable to conclude the percent is less now than 5 years ago? Apply the 6-step hypothesis testing procedure to test using a = 5% (0.05). (LMW) Five Years Now Ago Aziz 18 11 Baker 19 38 Cortez 28 36 Duran 42 26 Edgewort 35 11 Foster 44 42 Gomez 46 Hochhack 20 27 Isoko 48 27 Jarvis 48 25 Kenda 36 33 Li 17 33 Morales 24 22 Nasser 32 11 Oliphant 43 39 Pierce 45 43 Quest 29 23 Rawlins 28 18 Sorrento 40 36 Thomas 23 13
Problem Set #3 J) The amount of income spent on housing is an important component of the cost of living. The total costs of housing for homeowners might include mortgages payments, property taxes, and utility costs (water, heat, electricity). An economist selected a sample of Inland Empire, California, homeowners and calculated housing costs as a percent of monthly income, 5 years ago and now. The information is reported below. Is it reasonable to conclude the percent is less now than 5 years ago? Apply the 6-step hypothesis testing procedure to test using a = 5% (0.05). (LMW) Five Years Now Ago Aziz 18 11 Baker 19 38 Cortez 28 36 Duran 42 26 Edgewort 35 11 Foster 44 42 Gomez 46 Hochhack 20 27 Isoko 48 27 Jarvis 48 25 Kenda 36 33 Li 17 33 Morales 24 22 Nasser 32 11 Oliphant 43 39 Pierce 45 43 Quest 29 23 Rawlins 28 18 Sorrento 40 36 Thomas 23 13
Chapter1: Making Economics Decisions
Section: Chapter Questions
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