A real estate agent compares the selling prices of homes in two municipalities in a certain location to see if there is a difference. The results of the study are shown. Is there enough evidence to reject the claim that the average cost of a home in both locations is the same? Use a=0.01. City A City B X1= $96,800 X2= $99,500 σ1= $5602 σ2= $4731 n= 135 n= 238 C) Compute the test value. Always round z score values to at least two decimal places. z= ??
Added by Marc M.
Step 1
The formula for this is: SE = sqrt[(σ1^2/n1) + (σ2^2/n2)] Substituting the given values, we get: SE = sqrt[(5602^2/135) + (4731^2/238)] = 677.67 Show more…
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Home Prices A real estate agent compares the selling prices of randomly selected homes in two municipalities in southwestern Pennsylvania to see if there is a difference. The results of the study are shown. Is there enough evidence to reject the claim that the average cost of a home in both locations is the same? Use $\alpha=0.01 .$ $$ \begin{array}{cc}{\text { Scott }} & {\text { Ligonier }} \\ \hline \overline{X_{1}=\$ 93,430^{*}} & {\bar{X}_{2}=\$ 98,043^{*}} \\ {\sigma_{1}=\$ 5602} & {\sigma_{2}=\$ 4731} \\ {n_{1}=35} & {n_{2}=40}\end{array} $$
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Home Prices A real estate agent compares the selling prices of homes in two municipalities in a certain location to see if there is a difference. The results of the study are shown. Is there enough evidence to reject the claim that the average cost of a home in both locations is the same? Use α = 0.05. City A X̄1 = $94,950 n1 = 40 City B X̄2 = $98,300 n2 = 38 Part 1 of 5 (a) State the hypotheses and identify the claim: H0: μ1 = μ2 H1: μ1 ≠ μ2 This hypothesis test is a two-tailed test. Part 2 of 5 (b) Find the critical value(s). Round the answer(s) to at least two decimal places. If there is more than one critical value, separate them with commas. Critical value(s): 2.86 Part 3 of 5 (c) Compute the test value. Always round z score values to at least two decimal places.
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