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The average price of homes sold in the U.S. in 2019 was $240,000 (u). A sample of 144 homes (n) sold in Chattanooga in 2019
The average price of homes sold in the U.S. in 2019 was $240,000 (u). A sample of 144 homes (n) sold in Chattanooga in 2019 showed an average price of $237,000 (X bar). It is known that the standard deviation of the population () is $36,000. We are interested in determining whether or not the average price of homes sold in Chattanooga is significantly different from the national average. 1. State your null and alternate hypotheses. 2. What is the value of the test statistic? Please show all the relevant calculations. 3. The null hypothesis is to be tested at the level of significance 0.1. Determine the Rejection Criteria based on the critical value approach. 4. What is the Statistical decision (i.e. reject /or do not reject the null hypothesis)? Provide justification for your decision
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