Question

Hope you can answer them, thank you

QUESTION 13

Your client has a gut feeling (she uses the force) that the average house price in Lincoln Dark is $450K. You decide to use the previously collected data. Your sample size is 25 houses. The average based on the sample is $500K. The sample standard deviation is $100K. Test the hypothesis that the average house price in Lincoln Dark is $450K against the alternative that it is not. Use alpha 10%.

What is you conclusion regarding the null hypothesis:

	1.	CANNOT reject Null Hypothesis
	2.	Reject Null Hypothesis
	3.	Accept Null Hypothesis
	4.	Impossible to answer given the information

QUESTION 14

Your client is now concerned whether the house prices in Lincoln Dark and Hyde Dark are the same. To collect data on house prices in Hyde Dark, your team randomly selects 9 houses. The sample average is $400K for Hyde Dark. The sample standard deviation for Hyde Dark is $90K. You decide to use the data for Lincoln Dark that you previously collected using 25 randomly selected houses. The sample average for Lincoln Dark was $500K. The sample standard deviation for Lincoln Dark was $100K. Test the hypothesis that the average house price in Lincoln Dark is the same as the average house price in Hyde Dark vs. the alternative that they are different. (A ghost of your professor appears to you and it shouts -- it is a two-sided hypothesis.) Use alpha 10%.

Tell the client the value of test statistic up to 3 decimal points (Hint: test statistic refers to t-test or z-test. Note you need to choose which one is the correct approach in this situation.)

QUESTION 15

Your client is now concerned whether the house prices in Lincoln Dark and Hyde Dark are the same. To collect data on house prices in Hyde Dark, your team randomly selects 9 houses. The sample average is $400K for Hyde Dark. The sample standard deviation for Hyde Dark is $90K. You decide to use the data for Lincoln Dark that you previously collected using 25 randomly selected houses. The sample average for Lincoln Dark was $500K. The sample standard deviation for Lincoln Dark was $100K. Test the hypothesis that the average house price in Lincoln Dark is the same as the average house price in Hyde Dark vs. the alternative that they are different. (A ghost of your professor appears to you and it shouts -- it is a two-sided hypothesis.) Use alpha 10%.

Tell the client the critical value up to 3 decimal points. (Hint: critical value refers to t-critical or z-critical. Note you need to choose which one is the correct approach in this situation. )

QUESTION 16

Your client is now concerned whether the house prices in Lincoln Dark and Hyde Dark are the same. To collect data on house prices in Hyde Dark, your team randomly selects 9 houses. The sample average is $400K for Hyde Dark. The sample standard deviation for Hyde Dark is $90K. You decide to use the data for Lincoln Dark that you previously collected using 25 randomly selected houses. The sample average for Lincoln Dark was $500K. The sample standard deviation for Lincoln Dark was $100K. Test the hypothesis that the average house price in Lincoln Dark is the same as the average house price in Hyde Dark vs. the alternative that they are different. (A ghost of your professor appears to you and it shouts -- it is a two-sided hypothesis). Use alpha 10%.

Choose your response to the client regarding Null Hypothesis from the choices below:

	1.	Reject Null Nypothesis
	2.	CANNOT Reject Null Nypothesis
	3.	ACCEPT Null Hypothesis
	4.	Impossible to answer given the information

QUESTION 17

Your client is now concerned whether the house prices in Lincoln Dark and Hyde Dark are the same. To collect data on house prices in Hyde Dark, your team randomly selects 9 houses. The sample average is $400K for Hyde Dark. The sample standard deviation for Hyde Dark is $90K. You decide to use the data for Lincoln Dark that you previously collected using 25 randomly selected houses. The sample average for Lincoln Dark was $500K. The sample standard deviation for Lincoln Dark was $100K. Test the hypothesis that the average house price in Lincoln Dark is $50K more expensive than the average house price in Hyde Dark vs. the alternative that they are not. (A ghost of your professor appears to you and it shouts -- it is a two-sided hypothesis). Use alpha 10%.

Your client asks you to provide her the value of test statistic up to 3 decimal points.

QUESTION 18

You pick up your client, Princess Leia, from her home. Ms. Leia shares her company’s model used to estimate the house prices in Lincoln Dark. (see below) Note: p-values are already in percent.

Based on the Excel output above which coefficients are statistically significant at alpha 1%. Choose all that apply

	1.	Intercept
	2.	Number of Bathrooms
	3.	Number of rooms
	4.	Square Feet
	5.	School District Rating
	6.	Age

QUESTION 19

You pick up your client, Princess Leia, from her home. Ms. Leia shares her company’s model used to estimate the house prices in Lincoln Dark. (see below) Note: p-values are already in percent.

Based on the Excel output above which coefficients are statistically significant at alpha 5%. Choose all that apply

	1.	Intercept
	2.	Number of Bathrooms
	3.	Number of rooms
	4.	Square Feet
	5.	School District Rating
	6.	Age

QUESTION 20

Explain to the client what null hypothesis and alternative hypothesis does the Excel test when it reports p-value for the Age coefficient. Be precise to get full credit.

Answer 1

13) z =(450-500)/100)*5 = -2.5. So,

Reject Null Hypothesis. Option B is Correct