UseReal_Estate.xlsfile (below) which consists of 100 homes purchased in 2015. It includes variables regarding the number of bedrooms, number of bathrooms, whether the house has a pool or garage, the age, size and price of the home, what the house is constructed from, and the appraisals in 2014 and 2015.

PROBLEM 1: It has been noted that swimming pools do nothing to increase value of a

home. Conduct a hypothesis test for two independent samples to determine if the mean sales differs for homes with and without a pool. Use a

.05 significance level. Describe your findings which includes stating the hypotheses, direction of the

test, p-value, decision to reject the null or not, and the conclusion.Note that this requires an

assumption that homes with a pool vs. those without are not much different otherwise (if those with a

pool are in better locations, made of better materials, are newer and larger, then those homes will be

worth more and itwon'thave a thing to do with a pool. So for the sake of simplicity,let'sassume

that the homes with vs. without a pool have similar variability in them.

1. What hypothesis test technique is used?

A. One Sample Test of Means

B. One Sample Test of Proportions

C. Two Sample Test of Means -- Independent Samples

D. Two Sample Test of Means -- Paired Samples

E. Two Sample Test of Proportions

F. Analysis of Variance

G. Correlation & Regression

H. Chi Square Goodness of Fit

I. Chi Square Test of Independence

2. What is the direction of the test?

A. 2-tailed

B. Upper-tailed

C. Lower-tailed

D. NOT APPLICABLE

3. What is the computed p-value? Use 4 decimal places.

4. True or False....The null hypothesis should be rejected.

5. True or False....It can be concluded that there is a difference in the mean sales prices for homes with vs. without a pool.

PROBLEM 2: How different can two real estate agents be in their appraisals? Conduct a hypothesis test for paired samples and test if

there is a difference in the mean appraisal prices given by these agents on the same homes. Use a .05

significance level. Describe your findings which includes stating the hypotheses, direction of the test,

p-value, decision to reject the null or not, and the conclusion.

1. What hypothesis test technique is used?

A. One Sample Test of Means

B. One Sample Test of Proportions

C. Two Sample Test of Means -- Independent Samples

D. Two Sample Test of Means -- Paired Samples

E. Two Sample Test of Proportions

F. Analysis of Variance

G. Correlation & Regression

H. Chi Square Goodness of Fit

I. Chi Square Test of Independence

2. What is the direction of the test?

A. 2-tailed

B. Upper-tailed

C. Lower-tailed

D. NOT APPLICABLE

3. What is the computed p-value?Use 4 decimal places.

4. True or False....The null hypothesis should be rejected.

5. True or False....It can be concluded that the mean appraisal prices differ for the two agents.