In: Statistics and Probability
A recent article in a local magazine indicated that the mean selling price of homes in the area is less than $232,000. Can we conclude that the mean selling price in the area is less than $232,000? Use the 0.01 significance level. {Use 232.0 as the value, not 232,000.}
Assume the list is a sample.
Price |
263.1 |
182.4 |
242.1 |
213.6 |
139.9 |
245.4 |
327.2 |
271.8 |
221.1 |
266.6 |
292.4 |
209 |
270.8 |
246.1 |
194.4 |
281.3 |
172.7 |
207.5 |
198.9 |
209.3 |
252.3 |
192.9 |
209.3 |
345.3 |
326.3 |
173.1 |
187 |
257.2 |
233 |
180.4 |
234 |
207.1 |
247.7 |
166.2 |
177.1 |
182.7 |
216 |
312.1 |
199.8 |
273.2 |
206 |
232.2 |
198.3 |
205.1 |
175.6 |
307.8 |
269.2 |
224.8 |
171.6 |
216.8 |
192.6 |
236.4 |
172.4 |
251.4 |
246 |
147.4 |
176 |
228.4 |
166.5 |
189.4 |
312.1 |
289.8 |
269.9 |
154.3 |
222.1 |
209.7 |
190.9 |
254.3 |
207.5 |
209.7 |
294 |
176.3 |
294.3 |
224 |
125 |
236.8 |
164.1 |
217.8 |
192.2 |
125.9 |
220.9 |
294.5 |
244.6 |
199 |
240 |
263.2 |
188.1 |
243.7 |
221.5 |
175 |
253.2 |
155.4 |
186.7 |
179 |
188.3 |
227.1 |
173.6 |
188.3 |
310.8 |
293.7 |
179 |
188.3 |
227.1 |
173.6 |
188.3 |
Requirement following the hypotheses testing 6-step process:
Notes:
using excel>Addin>phstat>one sample test
we have
t Test for Hypothesis of the Mean | |
Data | |
Null Hypothesis m= | 232 |
Level of Significance | 0.01 |
Sample Size | 105 |
Sample Mean | 221.1028571 |
Sample Standard Deviation | 47.10540443 |
Intermediate Calculations | |
Standard Error of the Mean | 4.597016762 |
Degrees of Freedom | 104 |
t Test Statistic | -2.370481428 |
Lower-Tail Test | |
Lower Critical Value | -2.362739201 |
p-Value | 0.009803774 |
Reject the null hypothesis |
1 ) the Null and Alternative Hypotheses are
Ho: u = 232
Ha: u <232 ( one tailed )
2 ) the significance level is 0.01
3 ) we will use t distribution because sigma is unknown
4 ) the value of test stat t at 0.01 with 104 df is -2.363
we will reject Ho if t < -2.263
5 )the test statistic t =-2.371
and the p-value. is 0.0098
6 ) conclusion. : since p value is less than so we reject Ho and conclude that mean selling price in the area is less than $232,000