Refer to Exercise 21. Two more samples are taken, one from Casper and one from Cheyenne. For
Question:
Refer to Exercise 21. Two more samples are taken, one from Casper and one from Cheyenne. For 50 homes in Casper, x̅1 = $231,581. For 50 homes in Cheyenne, x̅2 = $315,706. Use a = 0.01. Do the new samples lead to a different conclusion?
(a) Identify the claim and state H0, and Ha,
(b) Find the critical value(s) and identify the rejection region(s),
(c) Find the standardized test statistic z,
(d) Decide whether to reject or fail to reject the null hypothesis, and
(e) Interpret the decision in the context of the original claim. Assume the samples are random and independent, and the populations are normally distributed.
Data from Exercise 21:
A real estate agency says that the mean home sales price in Casper, Wyoming, is the same as in Cheyenne, Wyoming. The mean home sales price for 25 homes in Casper is $294,220. Assume the population standard deviation is $135,387. The mean home sales price for 25 homes in Cheyenne is $287,984. Assume the population standard deviation is $151,996. At a = 0.01, is there enough evidence to reject the agency’s claim?
Step by Step Answer:
Elementary Statistics Picturing The World
ISBN: 9780134683416
7th Edition
Authors: Ron Larson, Betsy Farber