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For questions 12-15: We want to compare the cost of three and four bedroom home. The following information is an output R comparing the mean

For questions 12-15: We want to compare the cost of three and four bedroom home. The following information is an output R comparing the mean list price of a four bedroom house to the mean list price of a three bedroom home.```

#### Welch Two Sample t-test

#### data: bed4 and bed3

## t = 1.5526, df = 27.094, p-value = 0.1321

## alternative hypothesis: true difference in means is not equal to 0

## 95 percent confidence interval:

## -14593.88 105438.33

## sample estimates:

## mean of x mean of y

## 284266.7 238844.4```

12. We want to know if there is a difference between the mean list price of a three bedroom home, 3, and the mean list price of a four bedroom home, 4. What is the alternative hypothesis?

a. 4 = 3

b. x4 6= x3

c. 4 6= 3

d. 4 > 3

e. x4 > x3

13. Give the test statistic of this test.

a. 1.5526

b. 27.094

c. 0.1321

d. -14593.88

e. 105438.33

14. Give the p-value of this test.

a. 1.5526

b. 27.094

c. 0.1321

d. -14593.88

e. 105438.33

15. Which is the proper conclusion of this hypothesis test?

a. We reject the null hypothesis at 5% significance. There is extremely strong evidence of a significance difference between the mean list price of three bedroom homes and the mean list price of four bedroom homes.

b. We reject the null hypothesis at 5% significance. There is no evidence of a significance differencebetween the mean list price of three bedroom homes and the mean list price of four bedroom homes.

c. We fail to reject the null hypothesis at 5% significance. There is no evidence of a significance difference between the mean list price of three bedroom homes and the mean list price of four bedroom homes.

d. We fail reject the null hypothesis at 5% significance. There is extremely strong evidence of a significance difference between the mean list price of three bedroom homes and the mean list price of four bedroom homes.e. We accept the null hypothesis at 5% significance. There is extremely strong evidence of a significance difference between the mean list price of three bedroom homes and the mean list price of four bedroom homes.

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