Homes in a nearby college town have a mean value of $88,950. It is assumed that homes in the vicinity of the college have a higher mean value. To test this theory, a random sample of 12 homes is chosen from the college area. Their mean valuation is $92,460, and the standard deviation is $5200. Complete a hypothesis test using a = 0.05 Assume prices are normally distributed.
a. Solve using the p-value approach.
b. Solve using the classical approach.