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Posted on Oct 19, 2024

Many people were concerned about the housing price collapse during the economic crisis in 2008 and thought the housing price did not recover. City of

Many people were concerned about the housing price collapse during the economic crisis in 2008 and thought the housing price did not recover. City of Dakota did two random samples of 40 single family residential new home sales in 2005 and 2010 (see spreadsheet Q #3 for details). Please help the city officials to assess the recovery of housing market in the city by comparing the two random samples and indicate your conclusion:

a.state the null and alternate hypothesis,

b.calculate the two-sample difference test to determine whether the new home sales are statistically similar or come from two different population, and

c.give your conclusion about the housing price recovery)

\begin{tabular}{r|r|r|rr} & & & \multicolumn{2}{|c}{ Sale Price for New Homes in } \\ \hline & & Sale Price for New Homes in Wicomico County, 2005 & Wicomico County, 2010 \\ \hline 2 & $ & 54,000.00 & $ & 350,000.00 \\ \hline 3 & $ & 167,600.00 & $ & 210,000.00 \\ \hline 4 & $ & 168,483.00 & $ & 159,900.00 \\ \hline 5 & $ & 150,000.00 & $ & 154,900.00 \\ \hline 6 & $ & 167,000.00 & $ & 48,000.00 \\ \hline 7 & $ & 184,900.00 & $ & 200,000.00 \\ \hline 8 & $ & 179,900.00 & $ & 125,000.00 \\ \hline 9 & $ & 94,000.00 & $ & 78,000.00 \\ \hline 10 & $ & 312,777.00 & $ & 157,850.00 \\ \hline 11 & $ & 154,000.00 & $ & 75,000.00 \\ \hline 12 & $ & 218,900.00 & $ & 90,000.00 \\ \hline 13 & $ & 234,900.00 & $ & 115,000.00 \\ \hline 14 & $ & 218,190.00 & $ & 145,000.00 \\ \hline 15 & $ & 115,000.00 & $ & 140,000.00 \\ \hline 16 & $ & 125,000.00 & $ & 35,000.00 \\ \hline 17 & $ & 100,500.00 & $ & 115,000.00 \\ \hline 18 & $ & 94,000.00 & $ & 145,000.00 \\ \hline 19 & $ & 119,900.00 & $ & 255,000.00 \\ \hline 20 & $ & 86.500.00 & $ & 200.000.00 \end{tabular} \begin{tabular}{r|lr|lr} 21 & $ & 237,160.00 & $ & 337,940.00 \\ 22 & $ & 135,000.00 & $ & 259,000.00 \\ \hline 23 & $ & 140,000.00 & $ & 140,000.00 \\ 24 & $ & 186,000.00 & $ & 160,500.00 \\ \hline 25 & $ & 177,500.00 & $ & 19,000.00 \\ \hline 26 & $ & 145,000.00 & $ & 104,000.00 \\ 27 & $ & 798,000.00 & $ & 164,900.00 \\ 28 & $ & 65,000.00 & $ & 115,000.00 \\ 29 & $ & 159,900.00 & $ & 250,000.00 \\ 30 & $ & 149,900.00 & $ & 170,000.00 \\ 31 & $ & 109,900.00 & $ & 170,000.00 \\ 32 & $ & 69,550.00 & $ & 68,000.00 \\ 33 & $ & 170,000.00 & $ & 189,000.00 \\ 34 & $ & 204,650.00 & $ & 235,000.00 \\ 35 & $ & 77,500.00 & $ & 205,000.00 \\ \hline 36 & $ & 139,900.00 & $ & 259,900.00 \\ 37 & $ & 248,000.00 & $ & 91,000.00 \\ \hline 38 & $ & 126,000.00 & $ & 80,000.00 \\ \hline 39 & $ & 172,650.00 & $ & 195,000.00 \\ \hline 40 & $ & 293,133.00 & $ & 101,000.00 \\ \hline 41 & $ & 106,000.00 & $ & 310,000.00 \\ \hline \end{tabular} \begin{tabular}{|ll|ll} $ & 171.407.33 & $ & 160.572.25 \end{tabular} \begin{tabular}{r|r|r|rr} & & & \multicolumn{2}{|c}{ Sale Price for New Homes in } \\ \hline & & Sale Price for New Homes in Wicomico County, 2005 & Wicomico County, 2010 \\ \hline 2 & $ & 54,000.00 & $ & 350,000.00 \\ \hline 3 & $ & 167,600.00 & $ & 210,000.00 \\ \hline 4 & $ & 168,483.00 & $ & 159,900.00 \\ \hline 5 & $ & 150,000.00 & $ & 154,900.00 \\ \hline 6 & $ & 167,000.00 & $ & 48,000.00 \\ \hline 7 & $ & 184,900.00 & $ & 200,000.00 \\ \hline 8 & $ & 179,900.00 & $ & 125,000.00 \\ \hline 9 & $ & 94,000.00 & $ & 78,000.00 \\ \hline 10 & $ & 312,777.00 & $ & 157,850.00 \\ \hline 11 & $ & 154,000.00 & $ & 75,000.00 \\ \hline 12 & $ & 218,900.00 & $ & 90,000.00 \\ \hline 13 & $ & 234,900.00 & $ & 115,000.00 \\ \hline 14 & $ & 218,190.00 & $ & 145,000.00 \\ \hline 15 & $ & 115,000.00 & $ & 140,000.00 \\ \hline 16 & $ & 125,000.00 & $ & 35,000.00 \\ \hline 17 & $ & 100,500.00 & $ & 115,000.00 \\ \hline 18 & $ & 94,000.00 & $ & 145,000.00 \\ \hline 19 & $ & 119,900.00 & $ & 255,000.00 \\ \hline 20 & $ & 86.500.00 & $ & 200.000.00 \end{tabular} \begin{tabular}{r|lr|lr} 21 & $ & 237,160.00 & $ & 337,940.00 \\ 22 & $ & 135,000.00 & $ & 259,000.00 \\ \hline 23 & $ & 140,000.00 & $ & 140,000.00 \\ 24 & $ & 186,000.00 & $ & 160,500.00 \\ \hline 25 & $ & 177,500.00 & $ & 19,000.00 \\ \hline 26 & $ & 145,000.00 & $ & 104,000.00 \\ 27 & $ & 798,000.00 & $ & 164,900.00 \\ 28 & $ & 65,000.00 & $ & 115,000.00 \\ 29 & $ & 159,900.00 & $ & 250,000.00 \\ 30 & $ & 149,900.00 & $ & 170,000.00 \\ 31 & $ & 109,900.00 & $ & 170,000.00 \\ 32 & $ & 69,550.00 & $ & 68,000.00 \\ 33 & $ & 170,000.00 & $ & 189,000.00 \\ 34 & $ & 204,650.00 & $ & 235,000.00 \\ 35 & $ & 77,500.00 & $ & 205,000.00 \\ \hline 36 & $ & 139,900.00 & $ & 259,900.00 \\ 37 & $ & 248,000.00 & $ & 91,000.00 \\ \hline 38 & $ & 126,000.00 & $ & 80,000.00 \\ \hline 39 & $ & 172,650.00 & $ & 195,000.00 \\ \hline 40 & $ & 293,133.00 & $ & 101,000.00 \\ \hline 41 & $ & 106,000.00 & $ & 310,000.00 \\ \hline \end{tabular} \begin{tabular}{|ll|ll} $ & 171.407.33 & $ & 160.572.25 \end{tabular}