Hypothesis Testing and Confidence Interval for a Population Mean Two years ago, the study showed that the mean price of all one-bedroom condos is 560 thousand dollars in a city. Since the mortgage rate is very low during the COVID-19 pandemic, economists believed that the mean price of one-bedroom condos will be continuously increasing. To support the claim, a random sample of one-bedroom condos is selected from the city during the COVID-19 pandemic, and their prices (in thousands of dollars) are shown below. 510 535 538 546 563 575 581 606 608 608 622 629 645 671 674 692 Part A – Suppose we want to test whether the claim is true or not. a. State the null and alternative hypotheses (symbolically). b. Calculate the test statistic and p-value for the hypothesis test. Assume the population standard deviation of the house prices is 50 thousand dollars. c. Interpret the p-value in the context of the problem. d. At the 5% significance level, what can you conclude?
Hypothesis Testing and Confidence Interval for a Population Mean
Two years ago, the study showed that the mean price of all one-bedroom condos is 560 thousand dollars in a city.
Since the mortgage rate is very low during the COVID-19 pandemic, economists believed that the mean price of one-bedroom condos will be continuously increasing.
To support the claim, a random sample of one-bedroom condos is selected from the city during the COVID-19 pandemic, and their prices (in thousands of dollars) are shown below.
510 535 538 546 563 575 581 606 608 608 622 629 645 671 674 692
Part A – Suppose we want to test whether the claim is true or not.
a. State the null and alternative hypotheses (symbolically).
b. Calculate the test statistic and p-value for the hypothesis test. Assume the population standard deviation of the house prices is 50 thousand dollars.
c. Interpret the p-value in the context of the problem.
d. At the 5% significance level, what can you conclude?
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