The housing market has recovered slowly from the economic crisis of 2008. Recent

Question

The housing market has recovered slowly from the economic crisis of 2008. Recently, in one large community, realtors randomly sampled 29 bids from potential buyers to estimate the average loss in home value. The sample showed the average loss was $8203 with a standard deviation of $1417. In 2011, the average home in this region of the country lost $7773 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.

State the hypotheses he mean home value lost in the community is denoted by H.) O A. Ho: u 27773 O B. Ho: 7773 HA: 7773 HA: 7773 O C. Ho: 7773 O D. Ho: H 7773 HA: 7773 HA: H 7773 Calculate the test statistic. (Round to two decimal places as needed.) Calculate the P-value. P-value (Round to three decimal places as needed.) State the conclusion. O A. Reject the null hypothesis. Conclude that the loss of home values in this community does not appear to be unusual O B. Fail to reject the null hypothesis. Conclude that the loss of home values in this community does appear to be unusual O C. Fail to reject the null hypothesis. Conclude that the loss of home values in this community does not appear to be unusual O D. Reject the null hypothesis. Conclude that the loss of home values in this community does appear to be unusual

Explanation / Answer

The statistical software output for this problem is:

One sample T hypothesis test:
: Mean of population
H0 : = 7773
HA : 7773

Hypothesis test results:

Hence,

Hypotheses: Option D

t = 1.63

P - value = 0.113

Conclusion: Option C

Mean Sample Mean Std. Err. DF T-Stat P-value 8203 263.13029 28 1.6341714 0.1134

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