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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

Expert Solution

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orchestra answered 1 year ago

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