Reference no: EM132432463
Problem: Suppose a real estate agent is interested in comparing the asking prices of mid-range homes in Brisbane and Canberra. The real estate agent conducts a small telephone survey in the two cities, asking the prices of mid-range homes. A random sample of 21 listings in Brisbane resulted in a sample average price of $507,600, with a standard deviation of 9,200. A random sample of 26 listings in Canberra resulted in a sample average price of $496,000, with a standard deviation of 7,000. The estate agent assumes prices of mid- range homes are normally distributed and the variance in prices in the two cities are about the same. Test whether there is any difference in the mean prices of mid-ranged homes of the two cities for α = 0.05.
B for Brisbane and C for Canberra
1. Ho: muB - muC (= ; <= ; >=) ___ 0
Ha: muB - muC (< > ; > ; <) ___ 0
2. Statistical test: (z / t) = ____ test
3. Level of significance (be careful as to one-tailed or two-tailed) = ____
4. Set up critical values (Write the value in the box, include "-" sign if negative, if two values, just write the positive one) = ____
5. Gather sample data: xbarB = 507,600 ; nB = 21; (sigmaB or sB) ______ = 9,200; xbarC = 496,000 ; nC = ______ ; sC = 7,000
6. Calculate test statistic (answer correct to 2 decimal places) ______
7. Make statistical conclusion: (Reject / Do not reject) ______ the null hypothesis. There is (sufficient/insufficient)______ evidence that there is a difference in the mean prices of mid-ranged homes of the two cities.