Rebecca is a real estate agent who would like to find evidence supporting the claim that the population mean market valueof houses in the neighborhood where she works is greater than $250,000. To test the claim, she randomly selects 35houses in the neighborhood and finds that the sample mean market value is $259,860 with a sample standard deviation of$24,922. The test statistic t for a hypothesis test of Ho : μ = 250,000 versus Ha : μ 〉 250,000 is t 2.34 , which has34 degrees of freedom. If 0.01

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Asked Mar 28, 2019
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Rebecca is a real estate agent who would like to find evidence supporting the claim that the population mean market value
of houses in the neighborhood where she works is greater than $250,000. To test the claim, she randomly selects 35
houses in the neighborhood and finds that the sample mean market value is $259,860 with a sample standard deviation of
$24,922. The test statistic t for a hypothesis test of Ho : μ = 250,000 versus Ha : μ 〉 250,000 is t 2.34 , which has
34 degrees of freedom. If 0.01 <p-value< 0.025 and the level of significance is α-0.05, which of the following
statements are accurate for this hypothesis test to evaluate the claim that the true population mean market value of houses
in the neighborhood where she works is greater than $250,000?
Select all that apply:
O
Fail to reject the null hypothesis that the true population mean market value of houses in the neighborhood
where Rebecca works is equal to $250,000
Reject the null hypothesis that the true population mean market value of houses in the neighborhood where
Rebecca works is equal to $250,000
There is enough evidence at the a
0.05 level of significance to support the claim that the true population mean
market value of houses in the neighborhood where Rebecca works is greater than $250,000.
There is not enough evidence at the α-0.05 level of significance to suggest that the true population mean
market value of houses in the neighborhood where Rebecca works is not equal to $250,000.
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Rebecca is a real estate agent who would like to find evidence supporting the claim that the population mean market value of houses in the neighborhood where she works is greater than $250,000. To test the claim, she randomly selects 35 houses in the neighborhood and finds that the sample mean market value is $259,860 with a sample standard deviation of $24,922. The test statistic t for a hypothesis test of Ho : μ = 250,000 versus Ha : μ 〉 250,000 is t 2.34 , which has 34 degrees of freedom. If 0.01 <p-value< 0.025 and the level of significance is α-0.05, which of the following statements are accurate for this hypothesis test to evaluate the claim that the true population mean market value of houses in the neighborhood where she works is greater than $250,000? Select all that apply: O Fail to reject the null hypothesis that the true population mean market value of houses in the neighborhood where Rebecca works is equal to $250,000 Reject the null hypothesis that the true population mean market value of houses in the neighborhood where Rebecca works is equal to $250,000 There is enough evidence at the a 0.05 level of significance to support the claim that the true population mean market value of houses in the neighborhood where Rebecca works is greater than $250,000. There is not enough evidence at the α-0.05 level of significance to suggest that the true population mean market value of houses in the neighborhood where Rebecca works is not equal to $250,000.

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Expert Answer

Step 1

Test hypothesis:

Denote the population mean market value of houses in the neighborhood of Rebecca as μ.

The investigator is interested to test whether the population mean market value of houses in the neighborhood of Rebecca is greater than $250,000 or not.

The hypotheses are given below:

Null hypothesis:

H0 : μ = $250,000

That is, the population mean market value of houses in the neighborhood of Rebecca is equal to $250,000.

Alternative hypothesis:

Ha : μ > $250,000 (Right tail test).

That is, the population mean market value of houses in the neighborhood of Rebecca is greater than $250,000.

Step 2

Given information.

Here, the population standard deviation is not known.

Under null hypothesis the population mean market value of houses in the neighborhood of Rebecca is μ = $250,000.

The sample mean market value of houses in the neighborhood of Rebecca is x-bar = $259,860, the sample size is n = 35 and the sample standard deviation in the market value of houses in the neighborhood of Rebecca is s = $24,992.

The test statistic value is t = 2.34 and the P–value lies between 0.01 and 0.025 and the level of significance is α = 0.05.

Step 3

Decision rule:

Decision rule based on P-value approach:

If P-value ≤ α, then reject the null hypothesis H0.

If P-value >...

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Hypothesis Testing

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