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Question

A realtor in Mission Viejo, California, believes that the average price of a house is more than $\$ 500,000$.

c. At $\alpha=0.05$, what is the conclusion to the test? Is the realtor's claim supported by the data?

Solution

VerifiedAnswered 1 year ago

Answered 1 year ago

Step 1

1 of 10Considering this task we know that hypotheses look like this:

$\begin{aligned} H_0&:\mu\le500,000\\ H_A&:\mu>500,000 \end{aligned}$

and the sample of $n = 36$ house prices, while the population standard deviation is $\sigma=\$100,000$.

We need to calculate at $α = 0.05$, what is the conclusion to the test.

*To begin with, we need to find the average share price for a given sample, remember what is mean in this case and how is it found?*

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