Author Question: The average price of homes sold in the U.S. in 2012 was 240,000 . A sample of 144 homes sold in ... (Read 95 times)

Chelseaamend · **on:** Jun 24, 2018

The average price of homes sold in the U.S. in 2012 was 240,000 . A sample of 144 homes sold in Chattanooga in 2012 showed an average price of 246,000 . It is known that the standard deviation of the population () is 36,000 . We are interested in determining whether or not the average price of homes sold in Chattanooga is significantly more than the national average.
a. State the null and alternative hypotheses to be tested.
b. Compute the test statistic.
c. The null hypothesis is to be tested at the 5 level of significance. Determine the critical value(s) for this test.
d. What do you conclude?

Question 2

When a person knowledgeable on the subject of the study selects units that he or she feels are most representative of the population, the approach is called
a. stratified sampling.
b. convenience sampling.
c. judgment sampling.
d. systematic sampling.

ghepp · **Reply #1 on:** Jun 24, 2018

Answer to Question 1

a. H0: 240,000
Ha: > 240,000
b. Test statistic z = 2
c. z.05 = 1.645
d. Reject H0 and conclude that the average price in Chattanooga is higher than the national average.

Answer to Question 2

c