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Hi, I'm doing a project and I'm unsure what test will be most appropriate for the scenario. Scenario: You have been hired by the Regional

Hi, I'm doing a project and I'm unsure what test will be most appropriate for the scenario.

Scenario: You have been hired by the Regional Real Estate Company to help them analyze real estate data. One of the company's Pacific region salespeople just returned to the office with a newly designed advertisement. The average cost per square foot of home sales based on this advertisement is $280. The salesperson claims that the average cost per square foot in the Pacific region is less than $280. In other words, he claims that the newly designed advertisement would result in higher average cost per square foot in the Pacific Region. He wants you to make sure he can make that statement before approving the use of the advertisement. In order to test his claim, you will generate a random sample size of 750 using data for the Pacific region and use this data to perform a hypothesis test.

  • Population Parameter being tested: Mean cost per sqft in the Pacific region
  • Let u represent the mean cost per sqft in the Pacific Region
  • Mean cost per sqft based on new advertisement: $280
  • Claim: Mean cost per sqft in the Pacific region is less than $280

I can choose the Two-Tailed Test, Left Tailed Test, or Right Tailed Test. I know that based on the scenario, the Two-Tailed Test is not correct. So I'm left with either:

Left Tailed Test H0: u = 280 H0: u < 280

Right Tailed Test H0: u = 280 H1: u > 280

I think Left Tailed is most appropriate but I just want to confirm. Thank you in advance!

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