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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:
- 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.
- 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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