The housing market has recovered slowly from the economic crisis of 2008. Recently, in one large community, realtors randomly sampled 45 bids from potential buyers to estimate the average loss in home value. The sample showed the average loss was$9985 with a standard deviation of $1641. In 2011, the average home in this region of the country lost $9641 in value. Was the community studied by the realtors unusual? Use a t-test to decide if the average loss observed was significantly different from the regional average with 0.05 as the P-value cutoff level.
The housing market has recovered slowly from the economic crisis of 2008. Recently, in one large community, realtors randomly sampled 45 bids from potential buyers to estimate the average loss in home value. The sample showed the average loss was$9985 with a standard deviation of $1641. In 2011, the average home in this region of the country lost $9641 in value. Was the community studied by the realtors unusual? Use a t-test to decide if the average loss observed was significantly different from the regional average with 0.05 as the P-value cutoff level.
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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The housing market has recovered slowly from the economic crisis of 2008. Recently, in one large community, realtors randomly sampled 45 bids from potential buyers to estimate the average loss in home value. The sample showed the average loss was$9985 with a standard deviation of $1641. In 2011, the average home in this region of the country lost $9641 in value. Was the community studied by the realtors unusual? Use a t-test to decide if the average loss observed was significantly different from the regional average with 0.05 as the P-value cutoff level.
Transcribed Image Text:State the hypotheses. (The mean home value lost in the community is denoted by μ.)
A. Ho: μ#9641
HA:μ=9641
OC. Ho: μ = 9641
HA: μ#9641
Calculate the test statistic.
tn - 1 =
(Round to two decimal places as needed.)
Calculate the P-value.
P-value =
(Round to three decimal places as needed.)
State the conclusion.
B. Ho: μ ≥9641
HA: μ< 9641
O D. Ho: μ<9641
HA: μ#9641
A. Fail to reject the null hypothesis. Conclude that the loss of home values in this community does appear to be unusual.
B. Reject the null hypothesis. Conclude that the loss of home values in this community does appear to be unusual.
C. Reject the null hypothesis. Conclude that the loss of home values in this community does not appear to be unusual.
D. Fail to reject the null hypothesis. Conclude that the loss of home values in this community does not appear to be unusual.
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