Question

Find the average price of homes in the county you selected and use that as population mean prices to state a hypothesis about the data. Note that you already have a sample mean of your area, Use this to set up a hypothesis test. Develop a summary of the five-step hypothesis testing model. ( I tried to provide as much information) Also please show work.

Average Price of home in my county= $580,400 Mean=640069.371428571 stand error=   20175.166257334

The Sample mean that already have = $ 640,069 Stand. Dev.=119357.893215687 count= 35 Variance: 14246306672.8874

Critical t= confidence=95% sign= 5%

2.05183052

Answer 1

(1) CONFIDENCE INTERVAL:

= 640069

s = 119357.8932

n = 35

=0.05

df = 35 - 1 = 34

From Table, critical values of t = 2.032

Confidence Interval:

So,

Confidence Interval:

(599068.13, 681069.87)

(2)   HYPOTHESIS TEST:

Step 1:

H0: Null Hypothesis: = 580400 ( Average Price of home in my area is same as Average Price of home in my county) (Claim)

HA: Alternative Hypothesis: 580400 ( Average Price of home in my area is not same as Average Price of home in my county)

Step 2:

= 640069

s = 119357.8932

n = 35

=0.05

df = 35 - 1 = 34

From Table, critical values of t = 2.032

Step 3:

Test Statistic is given by:

Step 4:

Since calculated value of t = 2.958 is greater than critical value of t = 2.032, the difference is significant. Reject null hypothesis.

Step 5:
The data do not support theclaim that average Price of home in my area is not same as Average Price of home in my county.