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Consider the following sample of houses collected from two neighbourhoods. It is presumed that both samples have the same population standard deviation. Sample from area

Consider the following sample of houses collected from two neighbourhoods. It is presumed that both samples have the same population standard deviation.

Sample from area 1 of House prices in $1000s of dollars Sample from area 2 of House prices in $1000s of dollars
677 695 806 1011 564 867 795 906 1011 514
1156 399 772 630 1114 1258 449 862 865 1104
1144 507 516 613 706 1547 457 546 723 602
877 1146 656 753 548 698 1148 1693 653 501
445 579 500 581 664 545 669 626 851 592
826 956 1146 680 886 816 1096 1156 860 908
746 1146 481 747 477 951 1256 594 760 505
  • Based on the information - are these dependent or independent samples? Briefly explain.
  • Using the 5 step hypothesis test procedure. Test at the ten percent level if the average value of houses in area two is greater than the average value in area 1.
  • Would your results have changed if you had tested at a five percent level? Would it be ethical to go back and update your significance level if you wanted to prove one outcome over another? Briefly rationalize.

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