A sample of 510 homes for sale in ABC City showed a man asking price of $258,000, but the city claimed that the mean asking price for the population was $249,000. The population standard deviation of all homes for sale was $9000. Use the p-value approach to conduct a full hypothesis test that can be used to determine whether the mean asking price is significantly greater than $249'ppp. Let a=.05
A sample of 510 homes for sale in ABC City showed a man asking price of $258,000, but the city claimed that the
Given Information :
A sample of 510 homes for sale in ABC City showed a man asking price of $258,000, but the city claimed that the mean asking price for the population was $249,000. The population standard deviation of all homes for sale was $9000.
The provided sample mean is and the known population standard deviation is , and the sample size is .
Null and Alternative Hypotheses
The following null and alternative hypotheses need to be tested:
Ho: Mean asking price is equal to $249,000 .
Ha: Mean asking price is greater than $249'ppp
This corresponds to a left-tailed test, for which a z-test for one mean, with known population standard deviation will be used.
Rejection Region
Based on the information provided, the significance level is , and the critical value for a left-tailed test is .
The rejection region for this left-tailed test is
Test Statistics
The z-statistic is computed as follows:
Test Statistic = -0.023
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