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A statewide real estate agency specializes in selling farm property in the state of Nebraska. Their records indicate that the mean selling time if farm properties has been 90 days. Because of the drought conditions they now believe that the mean selling time is greater than 90 days. A statewide survey of 121 famrs recently sold revealed that the mean selling time was 93 days with a standard deviation of 12 days. The questions below relate to determining if this sample shows an increase in selling time at the .03 level of significance.
1. What is the null hypothesis?
2. What is the alternate hypothesis?
3. What is the critical value of z if the level of significance is .02?
4. What is the value of the test statistic?
5. What is the p-value of the test?
6. Can you reject the null hypothesis at the .02 level of significance? Explain.
7. If you reject the null hypothesis what is the probability that you will have made a mistake?
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