The next four questions refer to the following situation:

The national average price of homes sold in the U.S. in 2012 was $240,000. A sample of 144 homes sold in Chattanooga in 2012 showed an average price of $246,000. It is known that the standarddeviation of the population ()is $36,000. We are interested in determining whether or not the average price of homes sold in Chattanooga issignificantly morethan the national average.

In the provided blank, insert the letter that corresponds with the correct answer. For example, if the correct answer is "a. 2.5", insert "a" as the correct answer.

I. State the null and the alternative hypotheses

a.H₀: 240,000;H_a:< 240,000 b.H₀: 240,000;H_a:> 240,000 c.H₀:= 240,000;H_a: 240,000 d.H₀:< 240,000;H_a: 240,000

II. The null hypotheses is to be tested at 95% confidence. Determine the critical value(s) for this test

a. 2.33 b. -2.33 c. -1.645 d. 1.645

III. Compute the estimated or statistical value

a. 2 b. -2 c. -1.645 d. 1.645

IV. Based on the test, what do you conclude?

a. Do not rejectH₀and conclude that the average price in Chattanooga is higher than the national average b. Do not rejectH₀and conclude that the average price in Chattanooga is not higher than the national average c. RejectH₀and conclude that the average price in Chattanooga is higher than the national average d. RejectH₀and conclude that the average price in Chattanooga is not higher than the national average