Solution Found!
For the following exercises where applicable:a. State the
Chapter 8, Problem 16CQ(choose chapter or problem)
For the following exercises where applicable:
a. State the hypotheses and identify the claim.
b. Find the critical value(s).
c. Compute the test value.
d. Make the decision.
e. Summarize the results.
Use the traditional method of hypothesis testing unless otherwise specified. Assume all variables are normally distributed.
Home Closing Costs A real estate agent believes that the average closing cost of purchasing a new home is $6500 over the purchase price. She selects 40 new home sales at random and finds that the average closing costs are $6600. The standard deviation of the population is $120. Test her belief at \(\alpha=0.05\).
Questions & Answers
QUESTION:
For the following exercises where applicable:
a. State the hypotheses and identify the claim.
b. Find the critical value(s).
c. Compute the test value.
d. Make the decision.
e. Summarize the results.
Use the traditional method of hypothesis testing unless otherwise specified. Assume all variables are normally distributed.
Home Closing Costs A real estate agent believes that the average closing cost of purchasing a new home is $6500 over the purchase price. She selects 40 new home sales at random and finds that the average closing costs are $6600. The standard deviation of the population is $120. Test her belief at \(\alpha=0.05\).
ANSWER:Solution
Step 1 of 2
We have to test the real estate agent belief is true or not
Here the belief is that the average closing cost of purchasing a new house is $6500 over the purchase price
Here a random sample of 36 women then
The sample mean
Given
And
Null hypothesis
Alternative hypothesis (Two tailed test)
The critical value is