A statewide real estate sales agency, Farm Associates, specializes in selling fa

Question

A statewide real estate sales agency, Farm Associates, specializes in selling farm property in the state of Nebraska. Its records indicate that the mean selling time of farm property is 90 days. Because of recent drought conditions, the agency believes that the mean selling time is now greater than 90 days. A statewide survey of 100 farms sold recently revealed that the mean selling time was 94 days, with a standard deviation of 22 days. At the.10 significance level, has there been an increase in selling time?

Explanation / Answer

28)

THE NULL HYPOTHESIS = H0=U= 90

THE ALTERNATE HYPOTHESIS = Ha = U >90

the sample n = 100 therefore we will take it as normal distribution

at level = 0.10. Since n is large, we will do a large-sample z-test. The rejection region is Z > z = 1.645, using the normal table.

the test static value =

z = (x -mean)/(standard dev/sqrt(n)

z = (94-90)/(22/sqrt(100) = 1.81

as the 1.81 is greater then the critical region of 1.645

therefore we will reject the null hypothesis.

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.