A real estate agent believes that the mean size of houses in a certain city is greater
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A real estate agent believes that the mean size of houses in a certain city is greater than 1500 square feet.
He samples 100 houses, and performs a test of H0: μ = 1500 versus H1: μ > 1500. He obtains a P-value of 0.0002.
a. The real estate agent concludes that because the P-value is very small, the mean house size must be much greater than 1500. Is this conclusion justified?
b. Another real estate agent says that because the P-value is very small, we can be fairly certain that the mean size is greater than 1500, but we cannot conclude that it is a lot greater. Is this conclusion justified?
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