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Question: A realtor in Mission Viejo, California, believes that the standard deviation o f h o u se prices is more than 100 units, where each unit equals $1,000. Assume house prices are normally distributed.
a. State the null and the alternative hypotheses for the test.
b. Open the Mission Viejo (raw) data from the text website into an Excel spread sheet (data are in $1,000s). Calculate the value of the test statistic.
c. Use Excel's function (either CHISQ.DIS.RT or CHISQ.DIST) to calculate the p -value.
d. At α = 0.05 what is the conclusion? Is the realtor's claim supported by the data?
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