1-Tail Test Hypothesis: The national market listing price is $288,407. A random sample of 500 homes in the West South-Central region have a mean of $229,244. Are housing prices in West South- Central regional market higher than the national market average with a standard deviation of 75833.553. Hypothesis: Null Hypotheses Alternative hypotheses Ho: u=288,407 Ha: u> 288,407 Hypothesis: The level of significance is 0.05 Data analysis: Histogram for House Listing Price 12 8 Data analysis: Summarize your sample data, describing the center, spread, and shape in comparison to the national information. Data analysis: Check the assumptions by determining if the normal condition has been met. Determine if there are any other conditions that you should check and whether they have been met. Think about the central limit theorem and sampling methods. Hypothesis Test Calculations: [Determine the appropriate test statistic (f). This calculation is (mean-target)/standard error. In this case, the mean is your regional mean, and the target is the national mean.] Hypothesis Test Calculations: [Calculate the probability (p value). This calculation is done with the T.DIST function in Excel: =T.DIST([test statistic], [degree of freedom], True). The degree of freedom is calculated by subtracting 1 from your sample size.] Interpretation: [Compare the p value and significance level.] Interpretation: [Make the correct decision (reject or fail to reject).] Interpretation: [Provide a conclusion in the context of your hypothesis.] Data analysis: Comparison of West S. Central to National Average West South Central Region Listing Price National Average 288,407 Mean $229,244 Median $217,081 249940 Std Dev 75833.553 172779 Q1 169950 182725 Q3 279050 334640 n Listing price (S) 9,009 Mean 288,407 249,940 Median Std. Dev. 172,779 Min 60,670 Q1 Q3 182,725 334,640 Max 2,283,050 Cost per 9,009 152 126 121 41 99 164 2,486 square foot ($) Square 9,009 1,944 1,899 385 343 1,717 2,132 4,646 feet This graph shows the frequency for listing price. National Listing Price 3500 3000 2500 2000 1500 1000 500 0 000001 (100000, 200000] [0000000000) (00000000002) 00000, 500000] 1000009 '0000 [000000000006) 1000006 '000008) [0000000000) 100000 000009) This graph shows the frequency for square feet. National Square Feet 4000 3500 3000 2500 2000 1500 1000 500 10.00,375.00 (375.00, 750.00) (750.00, 1125.00) (1125.00, 1500.00 (1500.00,1875.00 (1875.00, 2250.00) (2250.00, 2625.00 (2625.00, 3000.00 >3000.00 National average 1000000 National average listing price National average listing price sample mean sample std dev standard error HO: u=288,407 H1: u > 288,407 Level of significance = 0.05 Test statistic p-value 288,407 12 $229,244 10 75833.55 3391.380 8 6 4 2 The Null hypothesis mean is equal to the national average. 0 -$17 7.33086E-54 7.3309E-54 Histogram for House Listing Price Comparison of West S. Central to National Average West South Central Region National Average Listing Price Mean $229,244 288,407 Median $217,081 249940 Std Dev 75833.553 172779 Q1 169950 182725 Q3 279050 334640