Ask Question
BusinessBusiness
15 May, 18:17

The chamber of commerce of a Florida Gulf Coast community advertises that area residential property is available at a mean cost of $125,000 or less per lot. Suppose a sample of 32 properties provided a sample mean of $130,000 per lot and a sample standard deviation of $12,500. Use a. 05 level of significance to test the validity of the advertising claim. Anderson, David R ... Essentials of Statistics for Business and Economics (p. 433). South-Western College Pub. Kindle Edition.

(a) Use a 0.05 level of significance to test the validity of the advertising claim.

(b) State the hypotheses.

(c) What is the p-value?

(d) What is your conclusion (use a level of significance of 0.05?

(e) What is the interpretation of your conclusion?

+2
Answers (1)
  1. 15 May, 18:21
    0
    Reject the null hypothesis

    Explanation:

    We have:

    • mu=125000

    • x bar=130000

    • s=12500

    • n=32

    • α=0.05

    •Hypothesis:

    H knot: mu ≤ 125000

    Hα: mu greater than 125000

    •Finding value of T statistics:

    t = x bar-mu knot/s/√n

    We get:

    =130000-125000/12500/√32

    =2.26

    •P value is the probability after solving the value of T statistic

    T value in the row:

    Df = n-1

    =32-1

    =31

    So,

    0.01 is less than P and P is less than 0.025

    P value is lower than the α, therefore hypothesis is rejected

    P is less than 0.05

    So,

    H knot is rejected
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “The chamber of commerce of a Florida Gulf Coast community advertises that area residential property is available at a mean cost of $125,000 ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
John complained to his buddy, frank, that prices have increased a lot over the past year. frank disagreed, saying that the prices of some goods have gone up a bit, but other prices have declined, noting that you can get some good buys on houses
Answers (1)
The Council of Elrond has decided to increase taxes, and the central bank of Elrond has decided to conduct open market purchases of financial assets.
Answers (1)
If property escheats, its title is transferred to a person's nearest blood relative. A. True B. False
Answers (1)
A consumer has taken their elderly parent to a new Gerontology clinic. After leaving they wonder if they made the right choice in going to this particular medical practice. This person might be said to suffer from cognitive dissonance. a. trueb.
Answers (1)
Inventory items on an assembly line in various stages of production are classified as
Answers (1)
New Questions in Business
There are plenty of products and services on the market that customers can choose from. however, customers select the business in which they purchase products based on the perceived value of the business and product.
Answers (1)
A married couple abandoned their principal residence in May. They had purchased the house five years ago for $350,000. The house had a current fair market value of $300,000.
Answers (1)
6 If you are a driver under 21 with a breath or blood alcohol level of. 05 or higher you will be required to:
Answers (1)
Why do you think companies felt that unions were "conspiracies that interfere with property rights"?
Answers (1)
When Ernesto needed to learn what his employees really think about his company's new pension plan, he approached Vonnie, a long-time secretary in the legal department with contacts throughout the organization.
Answers (1)
Home » Business » The chamber of commerce of a Florida Gulf Coast community advertises that area residential property is available at a mean cost of $125,000 or less per lot.
Sign Up Forgot Password?