SOLUTION: 1.A real estate agent compares the selling prices of homes in two municipalities in southwestern Pennsylvania to see if there is a difference in price. The results of the study are

Question 1187773: 1.A real estate agent compares the selling prices of homes in two municipalities in southwestern Pennsylvania to see if there is a difference in price. The results of the study are shown. Is there enough evidence to reject the claim that the average cost of a home in both locations is the same? Use α = 0.01.

Scott X1 = $93430 sd = 5602 n = 35
Ligonier X2 = $98043 sd = 4731 n = 40
*Based on information from RealSTATs.

Answer by Theo(13342) (Show Source): You can put this solution on YOUR website!
i've put this through several two sample t-test calculators and they all come up with the same verdict.

there is enough to reject the claim that the average price of a home in both locations is the same.

that means the results of the test are significant at the .01 two tail significance level.

the most complete results from a visual standpoint came from the following calculator.

https://www.evanmiller.org/ab-testing/t-test.html

these are the results.

the output says that the p-value is less than .001.

at 99% confidence interval, the p-value needs to be less than .005.

if you have to do this manually, it could be a chore.

here's a reference on how to do that.

https://stattrek.com/statistics/dictionary.aspx?definition=two-sample%20t-test

there is another formula to calculate the standard deviation and error that is more complicated.
i'm not sure it's worth the effort.
i did the calculations once and the difference between the standard errors using both methods wasn't that great, at lest with the example i used.
i'd recommend going with the formula in this tutorial, unless there's a good reason to do otherwise.
better yet, i'd recommend using a calculator as long as you are not required to do it manually.

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