Question

Question 15 4 pts In October 2003 the mean sale price of a single family home in Santa Clara County was $683,008. We are interested in determining whether the prices in Cupertino were greater than the county average. We randomly survey 10 Cupertino single family home sale prices in the same time period and find a mean of $703,329 and a standard deviation of $21,403. At a 5% level of significance, the correct decision is: Reject Ho Do not reject Ho Question 16 4 pts In October 2003 the mean sale price of a single family home in Santa Clara County was $683,008. We are interested in determining whether the prices in Cupertino were greater than the county average. We randomly survey 10 Cupertino single family home sale prices in the same time period and find a mean of $703,329 and a standard deviation of $21,403. We conclude that: The house prices in Cupertino were greater than the county average. The house prices in Cupertino were at most the county average. The house prices in Cupertino were less than the county average. The house prices in Cupertino were at least the county average.

Answer 1

Solution:

Question 15)

The null and alternative hypothesis are

H₀ : $\mu$ = 683008 vs H_a : $\mu$ >  683008

The test statistic t is

t =  
T-]/[s/n
= [703329- 683008 ]/[21403/$\sqrt{}$10] = 3.002

Now ,

d.f. = n - 1 = 10 - 1 = 9

> sign in Ha indicates that the test is RIGHT TAILED.(One tailed right sided)

t = 3.002

So , using calculator ,

p value = 0.007

The p-value is less than α = 0.05

This test statistic leads to a decision to...

Reject H₀

O Reject Ho

Question 16

We can conclude that

The house prices in Cupertino were greater than the county average.