We want to know if there is a difference between the mean list price of a three

Question

We want to know if there is a difference between the mean list price of a three bedroom home, 3, and the mean list price of a four bedroom home, 4, H0:3=4versus Ha:34. Suppose we get a p-value of 0.1325, which is the proper conclusion of this test?

a) We accept the null hypothesis at 5% significance. There is extremely strong evidence of a significance difference between the mean list price of three bedroom homes and the mean list price of four bedroom homes.

b) We reject the null hypothesis at 5% significance. There is no evidence of a significance difference between the mean list price of three bedroom homes and the mean list price of four bedroom homes.

c) We fail to reject the null hypothesis at 5% significance. There is no evidence of a significance difference between the mean list price of three bedroom homes and the mean list price of four bedroom homes.

d) We reject the null hypothesis at 5% significance. There is extremely strong evidence of a significance difference between the mean list price of three bedroom homes and the mean list price of four bedroom homes.

e) We fail reject the null hypothesis at 5% significance. There is extremely strong evidence of a significance difference between the mean list price of three bedroom homes and the mean list price of four bedroom homes.

f) None of the above

Explanation / Answer

The p-value calculated is 0.1325

As p-value is greater than the significance level of 0.05, we fail to reject the null hypothesis.

We fail reject the null hypothesis at 5% significance. There is extremely strong evidence of a significance difference between the mean list price of three bedroom homes and the mean list price of four bedroom homes.

Option (E)

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