Answered: A recent publication states that the…

MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

See similar textbooks

Related questions

Question

A recent publication states that the average closing cost for purchasing a new home is $8542. A real estate agent believes the average closing cost is less than $8542. She selects 28 new home purchases and finds that the average closing costs are $7467 with a standard deviation of $238. Help her decide if she is correct by testing her claim at αα=0.05.

The correct hypotheses would be:

H0:μ≤$8542H0:μ≤$8542
HA:μ>$8542HA:μ>$8542 (claim)
H0:μ≥$8542H0:μ≥$8542
HA:μ<$8542HA:μ<$8542 (claim)
H0:μ=$8542H0:μ=$8542
HA:μ≠$8542HA:μ≠$8542 (claim)

Since the level of significance is 0.05 the critical value is -1.703

The test statistic is: (round to 3 places)

The p-value is: (round to 3 places)

The decision can be made to:

reject H0H0
do not reject H0H0

The final conclusion is that:

There is enough evidence to reject the claim that the average closing cost is less than $8542.
There is not enough evidence to reject the claim that the average closing cost is less than $8542.
There is enough evidence to support the claim that the average closing cost is less than $8542.
There is not enough evidence to support the claim that the average closing cost is less than $8542.

Expert Solution