Question 294002: The "Daily Rago of Metropolis" states that the mean price of a house on Easy Street is $178,100. A realtor who sells houses on Easy Street thinks the mean price of a house is more than $178,100. If sample data is collected from 20 sales and the sample mean, xbar=$189,200 and the population standard deviation, r(greek sigma)=$18,725, test the realtor's claim at a(alpha)=0.05. Find the test statistic.
Answer by stanbon(75887)   (Show Source):
You can put this solution on YOUR website! The "Daily Rag of Metropolis" states that the mean price of a house on Easy Street is $178,100.
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A realtor who sells houses on Easy Street thinks the mean price of a house is more than $178,100.
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If sample data is collected from 20 sales and the sample mean, xbar=$189,200 and the population standard deviation, r(greek sigma)=$18,725, test the realtor's claim at a(alpha)=0.05.
Ho: u = 178,100
Ha: u > 178,100
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Find the test statistic: t(189,200)= (189,200-178,100)/[18,725/sqrt(20)]
= 2.6510
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p-value = P(t > 2.6510 when df = 19) = tcdf(2.6510,100,df=19)= 0,0079
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Conclusion: Since the p-value is less than 5%, reject Ho.
Note: That is the same as saying the ts in in the rejection interval.
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Cheers,
Stan H.
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