In: Statistics and Probability
Suppose the average size of a new house built in a certain county in 2014 was 2,273 square feet. A random sample of 25 new homes built in this county was selected in 2018. The average square footage was 2,194, with a sample standard deviation of 226 square feet. Complete parts a and b.
a. Using α =0.02, does this sample provide enough evidence to conclude that the average house size of a new home in the county has changed since 2014?
Determine the null and alternative hypotheses.
H0:μ ▼ greater than or equals ≥ not equals ≠ less than or equals ≤ equals =
H1:μ ▼ less than < greater than > equals = not equals ≠ (Type integers or decimals. Do not round.)
Determine the appropriate critical value. Select the correct choice below and fill in the answer box within your choice. (Round to three decimal places as needed.)
A. tα/2 equals =
B. tα equals =
C. −tα equals =
Calculate the appropriate test statistic.
t-x= (Round to two decimal places as needed.)
State the conclusion. ▼
Reject/Do not reject H0.
There ▼ is/is not sufficient evidence to conclude that the average house size of a new home in the county has ▼ increased/stayed the same/changed/decreased since 2014.
b. Determine the precise p-value for this test using Excel.
The p-value is . (Round to three decimal places as needed.)
Solution:
Given:
the average size of a new house built in a certain county in 2014 was 2,273 square feet
Thus
Sample size = n = 25
Sample mean =
sample standard deviation = s = 226
Part a) Using α =0.02, does this sample provide enough evidence to conclude that the average house size of a new home in the county has changed since 2014?
Part a-1) Determine the null and alternative hypotheses.
Since claim is non-directional , this is two tailed test.
H0:μ = 2273
Vs
H1:μ ≠ 2273
Part a-2) Determine the appropriate critical value.
Since this is two tailed test , find α / 2=0.02 / 2 = 0.01
df = n - 1 = 25 -1 = 24
Thus look in t table for df = 24 and one tail area = α / 2 = 0.01 and find t critical value.
tα / 2 = 2.492
A. tα / 2 = 2.492
Part a-3) Calculate the appropriate test statistic.
Part a-4) State the conclusion.
Since absolute t test statistic value = 1.75 < tα / 2 = 2.492, we do not reject H0.
Thus correct answer is:
Do not reject H0.
There is not sufficient evidence to conclude that the average house size of a new home in the county has changed since 2014.
Part b) Determine the precise p-value for this test using Excel.
=T.DIST.2T( absolute t test statistic , df)
=T.DIST.2T( 1.75 , 24)
=0.093
Thus p-value = 0.093