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The average price of homes sold in the U.S. in 2019 was $240,000 ( ) . A sample of 100 ( n ) homes sold
The average price of homes sold in the U.S. in 2019 was $240,000 (). A sample of 100 (n) homes sold in Phoenix in 2021 showed an average price of $236,000 (x). It is known that the standard deviation of the population () is $40,000. We are interested in determining whether or not the average price of homes sold in Phoenix in 2021 is significantly different from the national average.
- State your null and alternative hypotheses.
- What is the value of the test statistic? Please show all the relevant calculations.
- What are the rejection criteria based on the critical value approach? Use = 0.1.
- What is the Statistical decision (i.e., reject /or do not reject the null hypothesis)? Justify your answer.
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