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According to the National Association of Realtors website (https://www.nar.realtor/sites/default/files/documents/metro-home-prices-q3-2017-single-family-2017-11-02.pdf), the national median sales price for single-family homes was $254,000 in 2018. Assume that the following

According to the National Association of Realtors website (https://www.nar.realtor/sites/default/files/documents/metro-home-prices-q3-2017-single-family-2017-11-02.pdf), the national median sales price for single-family homes was $254,000 in 2018. Assume that the following data were obtained from samples of recent sales of single-family homes in St. Louis and Denver.

Samples of Recent Sales of Single-family Homes in St. Louis and Denver.

Metropolitan area Less than $254,000 Equal to $254,000 Greater than $254,000
St. Louis 32 2 18
Denver 13 1 27

Use the sample data provided in the Table to answer the following questions:

  1. Test the hypothesis to determine if the median sales price in St. Louis is lower than the national median of $254,000. In your answer include justification for choice of the type of the test.
  2. Test the hypothesis to determine if the median sales price in Denver is higher than the national median of $254,000. In your answer include justification for choice of the type of the test.

Use = .05 in all tests.

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