The Eagle Ridge Contractors Association claims the averageprice of a home in the

Question

The Eagle Ridge Contractors Association claims the averageprice of a home in their subdivision is $125,150 with a standarddeviation of $ 7,350. A sample of 36 homes for sale in thissubdivision had an average selling price of $123,550. Isthere evidence that the costs of homes for sale in this subdivisionare actually lower than claimed? a. At = 0.05, what is the critical value? b What is the test value for the problem? c. What is the - value for a one sided test of the dataprovided above? d. What is your conclusion after reviewing the anwers for 3-6? Explain your conclusion. The Eagle Ridge Contractors Association claims the averageprice of a home in their subdivision is $125,150 with a standarddeviation of $ 7,350. A sample of 36 homes for sale in thissubdivision had an average selling price of $123,550. Isthere evidence that the costs of homes for sale in this subdivisionare actually lower than claimed? a. At = 0.05, what is the critical value? b What is the test value for the problem? c. What is the - value for a one sided test of the dataprovided above? d. What is your conclusion after reviewing the anwers for 3-6? Explain your conclusion.

Explanation / Answer

Give n=36, xbar=123550, s=7350 (a) Given =0.05, |Z(0.05)|=1.645 (check normal table) So the critical value is 1.645

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