Question

The mean area of homes in a certain city built in 2009 was 2438 square feet....

The mean area of homes in a certain city built in 2009 was 2438 square feet. Assume that a simple random sample of 11 homes in the same city built in 2010 had a mean area of 2310 square feet, with a standard deviation of 225 square feet. An insurance company wants to know if the mean area of homes built in 2010 is less than that of homes built in 2009. Compute the P-value of the test.

Write down your P-value. You will need it for the next question.

Write only a number as your answer. Round to four decimal places (for example: 0.3841).

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Answer #1

To Test :-

H0 :- µ = 2438
H1 :- µ < 2438

Test Statistic :-
t = ( X̅ - µ ) / (S / √(n) )
t = ( 2310 - 2438 ) / ( 225 / √(11) )
t = -1.8868

P - value = P ( t > 1.8868 ) = 0.0443 ( From t table )


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