Question

In: Statistics and Probability

14. BigDeal Real Estate surveyed prices per square foot in the valley and foothills of Hoke-a-mo,...

14. BigDeal Real Estate surveyed prices per square foot in the valley and foothills of Hoke-a-mo, Utah. Based on BD’s DATA link, prices per square foot equal at α = 0.01?

a. The critical value is 2.977 since this is a two-tail scenario. The test statistic is 1.936. Since the test statistic < the critical value, the test statistic does not lie in the area of rejection. Do not reject the null hypothesis. The prices per square foot are equal at alpha = 0.01.

b. The critical value is 2.977 since this is a two-tail scenario. The test statistic is 2.239. Since the test statistic < the critical value, the test statistic does not lie in the area of rejection. Do not reject the null hypothesis. The prices per square foot are equal at alpha = 0.01.

c. The critical value is 2.977 since this is a two-tail scenario. The test statistic is 1.513. Since the test statistic < the critical value, the test statistic does not lie in the area of rejection. Do not reject the null hypothesis. The prices per square foot are equal at alpha = 0.01.

d. The critical value is 2.977 since this is a two-tail scenario. The test statistic is 3.207. Since the test statistic > the critical value, the test statistic does lie in the area of rejection. Reject the null hypothesis. The prices per square foot are not equal at alpha = 0.01.

Valley Foothills
109 82
116 161
106 163
157 112
147 222
105 137
173 226
153 200
137 154
110 176

Solutions

Expert Solution

Sample #1   ---->   1                  
mean of sample 1,    x̅1=   131.300                  
standard deviation of sample 1,   s1 =    25.091                  
size of sample 1,    n1=   10                  
                          
Sample #2   ---->   2                  
mean of sample 2,    x̅2=   163.300                  
standard deviation of sample 2,   s2 =    45.838                  
size of sample 2,    n2=   10                  
                          
difference in sample means =    x̅1-x̅2 =    131.3000   -   163.3   =   -32.000  
                          
pooled std dev , Sp=   √([(n1 - 1)s1² + (n2 - 1)s2²]/(n1+n2-2)) =    36.9506                  
std error , SE =    Sp*√(1/n1+1/n2) =    16.5248                  
                          
t-statistic = ((x̅1-x̅2)-µd)/SE = (   -32.0000   -   0   ) /    16.52   =   -1.936

a. The critical value is 2.977 since this is a two-tail scenario. The test statistic is 1.936. Since the test statistic < the critical value, the test statistic does not lie in the area of rejection. Do not reject the null hypothesis. The prices per square foot are equal at alpha = 0.01.


Related Solutions

Which of the following is true about real estate pricing? Real estate prices are always the...
Which of the following is true about real estate pricing? Real estate prices are always the same as the value of the real estate. Real estate prices are a function of the value of the real estate. Real estate prices are clearly observable in the market. Real estate prices can be influenced by the number of buyers and sellers active in the market. What type of easement is usually used for commercial purposes? Appurtenant easement Negative easement Gross Easement. Dominant...
Foot Locker uses sales per square foot as a measure of store productivity. Last year, the...
Foot Locker uses sales per square foot as a measure of store productivity. Last year, the mean annual sales per square foot was $390 with a standard deviation of $45.83. Suppose you take a random sample of 49 Foot Locker stores operating last year. There is a 16% probability that the sample mean annual sales per square foot is at most $______. a. 435.3717 b. 344.6283 c. None of the answers is correct d. 383.5183 e. 396.4817
Foot Locker uses sales per square foot as a measure of store productivity. Last year, the...
Foot Locker uses sales per square foot as a measure of store productivity. Last year, the mean annual sales per square foot was $410 with a standard deviation of $54.38. Suppose you take a random sample of 36 Foot Locker stores operating last year. There is a 3% probability that the sample mean annual sales per square foot is at most $______. a. None of the answers is correct b. 307.7656 c. 512.2344 d. 427.0391 e. 392.9609
Foot Locker uses sales per square foot as a measure of store productivity. Last year, the...
Foot Locker uses sales per square foot as a measure of store productivity. Last year, the mean annual sales per square foot was $370 with a standard deviation of $38.54. Suppose you take a random sample of 64 Foot Locker stores operating last year. There is a 86% probability that the sample mean annual sales per square foot is at least $______. a. None of the answers is correct b. 375.2029 c. 364.7971 d. 328.3768 e. 411.6232
The price of a floor tile is $3 per square foot, and the cost of shipping...
The price of a floor tile is $3 per square foot, and the cost of shipping is $20. You are adjusting the size of your bathroom according to the space availability. You would like to estimate the rate of change of cost for flooring that you expect when you change the size of the square bathroom of current length 10 feet. Assume x to be the length of a square shaped bathroom.Include units in all parts. a. Calculate the average...
Suppose that in past years the average price per square foot for warehouses in the United...
Suppose that in past years the average price per square foot for warehouses in the United States has been $32.28. A national real estate investor wants to determine whether that figure has declined now. The investor hires a researcher who randomly samples 49 warehouses that are for sale across the United States and finds that the mean price per square foot is $31.67, with a sample standard deviation of $1.29. At 5% level of significance, test to see if the...
A. The local real estate reported a sampling of house prices in a certain area as:...
A. The local real estate reported a sampling of house prices in a certain area as: $56,000; $78,000; $64,000; $190,000; $60,000; $74,000; $56,000. What would be the best, most realistic house price to report, and why? the Mean, the Median, the mode A deviation value is just how far is a single value from the mean. This is several subtraction problems. b. For the series of values 12, 15, 17, 22, 24: Calculate the Mean and show what the deviations...
A. The local real estate reported a sampling of house prices in a certain area as:...
A. The local real estate reported a sampling of house prices in a certain area as: $56,000; $78,000; $64,000; $190,000; $60,000; $74,000; $56,000. What would be the best, most realistic house price to report, and why? the Mean, the Median, the mode A deviation value is just how far is a single value from the mean. This is several subtraction problems. b. For the series of values 12, 15, 17, 22, 24: Calculate the Mean and show what the deviations...
PROBLEM 5 – HOUSING PRICES Situation: Real Estate One conducted a recent survey of house prices...
PROBLEM 5 – HOUSING PRICES Situation: Real Estate One conducted a recent survey of house prices for properties located on the shores of Tawas Bay. Data on 26 recent sales, including the number of bathroom, square feet and bedrooms are below. Selling Price Baths Sq Ft Beds 160000 1.5 1776 3 170000 2 1768 3 178000 1 1219 3 182500 1 1568 2 195100 1.5 1125 3 212500 2 1196 2 245900 2 2128 3 250000 3 1280 3 255000...
Five Year Discounted Cash Flow,Property is 5,000 square feet,Rent is $20 per square foot and increases...
Five Year Discounted Cash Flow,Property is 5,000 square feet,Rent is $20 per square foot and increases $2 per annum,Vacancy and Collection is 5% of PGI,Real Estate Taxes are $20,000 in year 1 and increase 5% per annum,Operating Expenses are $25,000 in year 1 and increases $1 per square foot per annum,Management is 5% of EGI, Discount Rate is 11%,Capitalization Rate is 9%,Calculate the NPV.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT