Real estate taxes are used to fund local education institutions, police protecti
ID: 3157318 • Letter: R
Question
Real estate taxes are used to fund local education institutions, police protection, ibraries, and other local public services. A household's real estate tax bill is based on the value of the house. In a recent year, the mean real estate tax bill per $1,000 assessed value for all households in a certain country was $9.12. A random sample of 50 rural households results in a sample mean real estate bill per $1,000 assessed value of $6.24 with a standard deviation of $6.01. Use the level of significance =0.05. Complete parts (a) and (b). (a) Based on the histogram and boxplot shown, why is a large sample necessary to conduct a hypothesis test about the mean? Click the icon to view the graphs. 0 A. O B. C. 0 D. The real estate tax bill distribution is skewed right with outliers. The real estate tax bill distribution is a uniform distribution. The real estate tax bill distribution is roughly normal with outliers. The real estate tax bill distribution is skewed left with outliers. (b) Conduct a hypothesis test using the P-value approach and a level of significance of :005 to determine if the evidence suggests the mean real estate bill for rural households per $1,000 assessed value differs from that of all households. Choose the correct hypotheses. HO: | H. |9.12 19.12 Find the test statistic. (Round to two decimal places as needed.) Find the P-value. The P-value is (Round to three decimal places as needed.) Use the level of significance = 0.05. What can be concluded from the hypothesis test? 0 A. O B. ° C. 0 D. The evidence does not suggest that rural households have a different mean real estate tax bill. The evidence does not suggest that rural households have a lower mean real estate tax bill. The evidence suggests that rural households have a different mean real estate tax bill. The evidence suggests that rural households have a lower mean real estate tax bill.Explanation / Answer
a)
OPTION A: It is skewed right with outliers.
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b)
Formulating the null and alternative hypotheses,
Ho: u = 9.12
Ha: u =/ 9.12 [ANSWER]
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Getting the test statistic, as
X = sample mean = 6.24
uo = hypothesized mean = 9.12
n = sample size = 50
s = standard deviation = 6.01
Thus, t = (X - uo) * sqrt(n) / s = -3.388465108 [ANSWER, TEST STATISTIC]
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As we can see, this is a two tailed test.
df = n - 1 = 49
Hence, the p value is
p = 0.001394821 [ANSWER, P VALUE]
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As P < 0.05,
OPTION C: The evidence suggests that rural households have a different mean real estate ta bill. [CONCLUSION]
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