Answer
$\bar{x}$ =2540 square feet μ=2400 square feet,,$σ_\bar{s}$ =$ \frac{472}{$50}$=66.7509, n = 50
α = 0.05, df = 50-1=49, critical value= 1.677
t=$ \frac{\bar{x}-μ }{σ_\bar{s}}$
= $ \frac{2540-2400 }{66.7509}$
=2.1
Rejection region = or z > 1.677
Non rejection region = z<= 1.677
The value z = 2.1 falls within the rejection region, hence we reject the null hypothesis and conclude that the real estate agent’s claim is false.
b. By p value approach,
If α = 0.01,
p-value = P(Z>2.1) = 0.018 > α
The p-value =0.018 is larger than α , hence we failed to reject the null hypothesis.
Work Step by Step
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