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In: Statistics and Probability

According to Relators-R-Us, the average price per square foot of homes in western Kansas is $85...

According to Relators-R-Us, the average price per square foot of homes in western Kansas is $85 with a standard deviation of $11.24. Using recent sales figures that happened in the city of Hays, the relators wish to determine if the average price per square foot in Hays is significantly different at the 1% level. In using a collection of thirty-seven randomly homes recently sold in Hays, they found the average price of these home was at $88.25 per square foot.            

A) Give the null and alternative hypotheses for this test.                                                                             H0:

H!

B) Determine the value of the test statistic.

C) Determine the appropriate critical value(s).         

D) Determine the P-value.

E) Is there sufficient evidence at the 1% significance level to believe the average price per square foot for homes in Hays is different from that in western Kansas as a whole? Explain your reasoning.           

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orchestra answered 2 years ago
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