Reference no: EM1321595

Find the test statistic value and critical value at α = 0.035.

The Eagle Ridge Contractors Association claims the average price of a home in their subdivision is $125,150 with a standard deviation of $7,350. A sample of 36 homes for sale in this subdivision had an average selling price of $123,550. Is there evidence that the costs of homes for sale in this subdivision are actually lower than claimed?

1. At a = 0.05, what is the test value?

A) 1.31

B) -1.52

C) 1.52

D) -1.31

2. Using the z table in Table E of Appendix C, determine the critical value for the hightailed test with a = 0.035.

A) 1.81

B) 0.39

C) 2.11

D) 2.05