Question

also calculate: the critical value(s), the test values, and reject/do not reject the hypothesis

The average sales price of new one-family houses in the Midwest is $252,400 and in the South is $259,500. A random sample of 36 houses in each region was examined with the following results. At the 0.05 level of significance, can it be concluded that the difference in mean sales price for the two regions is greater than $3400? Midwest South Sample size 36 36 Sample mean $259,500 $252,400 $10,500 Population standard deviation $12,000 Source: New York Times Almanac for the average sales price for a house in the South. Part 1 out of 5 State the hypotheses and identify the claim with the correct hypothesis. |(select) Но: И1 -М2 (Select) H1: 1H2(select) |(select) This hypothesis test is a (select) test

Answer 1

The statistic software output for this problem is:

Two sample Z summary hypothesis test: : Mean of population 1 (Std. dev. = 10500) Hz: Mean of population 2 (Std. dev. = 12000) H1 - H2 : Difference between two means Ho : H1 - H2 = 3400 HA: H1 - H2> 3400 Hypothesis test results: Difference nu n2 Sample mean Std. err. Z-stat P-value H1 - H2 36 36 7100 2657.5365 1.3922669 0.0819

H₀ : μ₁ - μ₂ = 3400
H_A : μ₁ - μ₂ > 3400

This is the right tailed(one tailed ) test .

Critical value = 1.645

Test statistics = 1.39

Test statistics < critical value

Fail to reject the null hypothesis