Question

In: Statistics and Probability

Question 1 A local realtor wants to determine the average value for single-family houses in a...

Question 1

A local realtor wants to determine the average value for single-family houses in a community.A random sample of 50 houses is selected. The sample mean value is found to be $220,000 with a sample standard deviation of $40,000.

a) Assuming that the values of all single-family houses in the community is normally

distributed, compute a 90% confidence interval estimate for μ, where μ is the population mean value for all single-family houses in the community.

b) Test the hypothesis Ho:μ=240,000

versus

Ha: μ< 240,000 at 5% significance level.

What is the p-value for the test?

c) Test the hypothesis Ho: μ = 240,000 versus

Ha: μ≠240,000 at 5% significance level.

What is the p-value for the test?

Question 2

The daily returns for a stock over a period of 110 days are recorded, and the summary descriptive statistics are given as follows:

Descriptive Statistics: return

Variable N N* Mean SEMean StDev Minimum Q1 Median

return 110 0 0.000983 0.00296 0.03103 -0.19992 -0.01393 0.00322

Variable Q3 Maximum

return 0.01591 0.09771

a) Find a 95% confidence interval estimate for μ, where

μ is the population mean rate of return of the stock.

b) Test the hypothesis Ho: μ= 0

versus

Ha: μ > 0 at 5% significance level.

What is the p-value for the test

Solutions

Expert Solution

---------------------------------------------------------------------------------------------------------------------------------------------

-------------------------------------------------------------------------------------------------------------------------------------------

orchestra answered 1 year ago

Next > < Previous

Related Solutions

Question 5 (1 point) The owner of a local golf course wants to determine the average...

Question 5 (1 point) The owner of a local golf course wants to determine the average age of the golfers that play on the course in relation to the average age in the area. According to the most recent census, the town has an average age of 48.93. In a random sample of 24 golfers that visited his course, the sample mean was 48.1 and the standard deviation was 5.999. Using this information, the owner calculated the confidence interval of...

The owner of a local golf course wants to determine the average age of the golfers...

The owner of a local golf course wants to determine the average age of the golfers that play on the course in relation to the average age in the area. According to the most recent census, the town has an average age of 63.248. In a random sample of 28 golfers that visited his course, the sample mean was 48.356 and the standard deviation was 6.8424. Using this information, the owner calculated the confidence interval of (45.703, 51.009) with a...

A local electronics firm wants to determine their average daily sales (in dollars.) A sample of...

A local electronics firm wants to determine their average daily sales (in dollars.) A sample of the sales for 36 days revealed an average sales of $141,000. Assume that the standard deviation of the population is known to be $12,000. Then, the 95% margin of error will be . . . Provide a 95% confidence interval estimate for the true average daily sales. $137,080 to $144,920 $139,500 to $143,000 $132,800 to 139,200 $136,200 to $142,200 $140,600 to $143,200 $135,600 to...

A sample of 30 recently sold single-family houses in a small city is selected. Develop a...

A sample of 30 recently sold single-family houses in a small city is selected. Develop a model to predict the selling price (in thousands of dollars), using the assessed value (in thousands of dollars) as well as time (in months since reassessment). The houses in the city had been reassessed at full value one year prior to the study. The results are stored in House1.xls. a. State the multiple regression equation. b. Interpret the meaning of the slopes in this...

Question 1. Weighted average cost of capital (LO11-1) Sauer Milk Inc. wants to determine the minimum...

Question 1. Weighted average cost of capital (LO11-1) Sauer Milk Inc. wants to determine the minimum cost of capital point for the firm. Assume it is considering the following financial plans: Cost (aftertax) Weights Plan A Debt........................................ 4.0% 30% Preferred stock........................................ 8.0 15 Common equity........................................ 12.0 55 Plan B Debt........................................ 4.5% 40% Preferred stock........................................ 8.5 15 Common equity........................................ 13.0 45 Plan C Debt........................................ 5.0% 45% Preferred stock........................................ 18.7 15 Common equity........................................ 12.8 40 Plan D Debt........................................ 12.0% 50% Preferred stock...........................................

TABLE 10-16 A realtor wants to compare the average sales-to-appraisal ratios of residential properties sold in...

TABLE 10-16 A realtor wants to compare the average sales-to-appraisal ratios of residential properties sold in four neighborhoods (A, B, C, and D). Four properties are randomly selected from each neighborhood and the ratios recorded for each, as shown below. A: 1.2, 1.1, 0.9, 0.4 C: 1.0, 1.5, 1.1, 1.3 B: 2.5, 2.1, 1.9, 1.6 D: 0.8, 1.3, 1.1, 0.7 Interpret the results of the analysis summarized in the following table: Referring to Table 10-16, what should be the decision...

Sales of single-family houses have been brisk in Mid City this year. This has especially been...

Sales of single-family houses have been brisk in Mid City this year. This has especially been true in older, more established neighborhoods, where housing is relatively inexpensive compared to the new homes being built in the newer neighborhoods. Nevertheless, there are also many families who are willing to pay a higher price for the prestige of living in one of the newer neighborhoods. The file C10_02. Xls contains data on 128 recent sales in Mid City. For each sales the...

Question 2: Single proportion A large corporation’s training and development manager wants to determine a 98%...

Question 2: Single proportion A large corporation’s training and development manager wants to determine a 98% confidence interval for the proportion of employees who have enrolled with universities while being employed. A sample of 990 employees indicates that 198 of them have started programmes with universities. Due to a recent change in its training and development policy, the corporation is required to show that at least 25% of its employees have enrolled with universities while being employed. Answer the following...

Question 1: A student at a university wants to determine if the proportion of students that...

Question 1: A student at a university wants to determine if the proportion of students that use iPhones is less than 0.34. If the student conducts a hypothesis test, what will the null and alternative hypotheses be? 1) HO: p < 0.34 HA: p ? 0.34 2) HO: p > 0.34 HA: p ? 0.34 3) HO: p = 0.34 HA: p ? 0.34 4) HO: p ? 0.34 HA: p < 0.34 5) HO: p ? 0.34 HA: p...

Question 5 (1 point) A student at a university wants to determine if the proportion of...

Question 5 (1 point) A student at a university wants to determine if the proportion of students that use iPhones is less than 0.46. The hypotheses for this scenario are as follows. Null Hypothesis: p ≥ 0.46, Alternative Hypothesis: p < 0.46. If the student takes a random sample of students and calculates a p-value of 0.8906 based on the data, what is the appropriate conclusion? Conclude at the 5% level of significance. Question 5 options: 1) The proportion of...

Subjects