Question 319794: What is the formula for finding the test value?
Answer by stanbon(75887)   (Show Source):
You can put this solution on YOUR website! The association claims the average price of a home in their subdivision is $125,150 with a standard deviation of $7350.
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A sample of 36 homes for sale in this subdivision had an average selling price of $123550. At a = 0.05, what is the test value?
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x-bar = 123550
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The test value, or test statistic is:
t(x-bar) = (123550-125150)/[7350/sqrt(36)] = -1.3061
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Cheers,
Stan H.
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