The amount of income spent on housing is an important component of the cost of l
ID: 3435920 • Letter: T
Question
The amount of income spent on housing is an important component of the cost of living. The total costs of housing for homeowners might include mortgage payments, property taxes, and utility costs. An economist selected a sample of 20 homeowners in New England and then calculated total housing costs as a percent of monthly income, five years ago and now. The information is reported below. Is it reasonable to conclude the percent is less now than five years ago? Use the 0.05 level of significance. (answers to 3 decimal places)
Homeowner
Five Years Ago (%)
Now (%)
Homeowner
Five Years Ago (%)
Now (%)
1
17
10
11
35
32
2
20
39
12
16
32
3
29
37
13
23
21
4
43
27
14
33
12
5
36
12
15
44
40
6
43
41
16
44
42
7
45
24
17
28
22
8
19
26
18
29
19
9
49
28
19
39
35
10
49
26
20
22
12
Hint: compute the difference (positive d means costs greater, negative means costs less. You might find it convenient to transcribe the data to a spreadsheet.
Here
Homeowner
Five Years Ago (%)
Now (%)
Homeowner
Five Years Ago (%)
Now (%)
1
17
10
11
35
32
2
20
39
12
16
32
3
29
37
13
23
21
4
43
27
14
33
12
5
36
12
15
44
40
6
43
41
16
44
42
7
45
24
17
28
22
8
19
26
18
29
19
9
49
28
19
39
35
10
49
26
20
22
12
Explanation / Answer
First from the given data, find mean and std deviation and also xy
H0:
Homeowner Five Years Ago (%) Now (%) x y xy 1 17 10 170 2 20 39 780 3 29 37 1073 4 43 27 1161 5 36 12 432 6 43 41 1763 7 45 24 1080 8 19 26 494 9 49 28 1372 10 49 26 1274 11 35 32 1120 12 16 32 512 13 23 21 483 14 33 12 396 15 44 40 1760 16 44 42 1848 17 28 22 616 18 29 19 551 19 39 35 1365 20 22 12 264 Mean 33.15 26.85 925.7 Std dev 11.08472159 10.38356495Related Questions
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