5-3 Assignment Means Test of Hypothesis 1-Sample - 1

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Southern New Hampshire University *

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Business

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Feb 20, 2024

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docx

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Hypothesis Testing for Regional Real Estate Company Kimberlyn Boddie Southern New Hampshire University Hypothesis Testing for Regional Real Estate Company 3 Introduction In order to help the regional real estate company confirm the veracity of the advertisement assertion made by a salesperson in the Pacific region, this study will evaluate real estate data. According to the commercial, the Pacific Region's average cost per square foot would increase as a result of the newly designed advertisement. According to this advertisement's average cost per square foot of property sales, the mean cost per square foot in the Pacific region currently is less than $280.00. I used information from the Pacific Region of House Listing Price spreadsheet to generate a random sample size of 750 to test his assertion. I made an excel spreadsheet using the collected data in order to get a truly random sample. Using Excel's RAND function, I then gave each property a random number, sorted the results, and picked the top 750 properties from the list. Hypothesis Test Setup The Pacific region's average price per square foot serves as the population parameter. The base case is that homes sold in the Pacific Region cost $280 on average per square foot. The alternate hypothesis is that the average price per square foot of homes sold in the Pacific region is less than $280. The Pacific region's population mean will be the subject of a left-tailed normal test distribution hypothesis test (Z-test), as I will be selecting a random sample from the entire population. The null hypothesis is predicted to outweigh the alternative hypothesis. The importance level is set to.05. Data Analysis Preparations This distribution's histogram shows a right tail. 249.94 is the data's mean value. It is centered between $104k and $282, according to the median statistics. The data is shown as a ski slope unimodal with a large peak that is favorably skewed and firmly grouped. Each population's sample is drawn at random and independently of the others. Less than 10% of the population, from which the samples were drawn, has a normal distribution and is known to exist. A 750-person sample size results in a normal sampling distribution. The prerequisites for performing the z-test have been satisfied. I'll be utilizing the formula z = (262.88 (-280)/5.80687003) since I decided to use the z-statistic computation. The significance level for my test statistic is 0.05, and it is -2.948972688. Calculations
Test Decision Below the 0.05 significance threshold, the p-value is 0.001643787. Strong evidence is presented against the null hypothesis by the statistically significant p-value. I agree with the alternative theory while rejecting the null hypothesis. Conclusion I think a left tail test should be used because the first alternative hypothesis was that the average cost per square foot was less than $280. 0.05 was the significant value. with a p-value that is just below 0.05. I reject the null hypothesis since the P Value was less than the level of significance. I come to the conclusion that the Pacific region's average cost per square foot is less than $280. It is untrue for the salesperson to assert that the newly created advertisement would raise the average cost per square foot in the Pacific Region.
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