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The average price of homes sold in the us in 2012 was $240000. A sample of 144 homes sold in Chattanooga in 2012 showed an average price of 246000. It is known that the standard deviation of the population is $36000. We are interested in determining whether or not the average price of homes sold in Chattanooga is significantly more than the national average.
a. State the null and alternative hypotheses to be tested.
b. Compute the test statistic
c. The null hypothesis is to be tested at the 5% level of significance. Determine the critical value(s) for this test
d. What do you conclude?
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