The amount of income spent on housing is an important component of the cost of living. The total costs of housing for homeowners might include mortgage payments, property taxes, and utility costs (water, heat, electricity). An economist selected a sample of 20 homeowners in New England and then calculated these total housing costs as a percent of monthly income, 5 years ago and now. The information is reported below. Is it reasonable to conclude the percent is less now than 5 years ago? HomeownerFive Years Ago Now Homeowner Five Years Ago Now1 17% 10% 11 35% 32%2 20 39 12 16 32 3 29 37 13 23 21 4 43 27 14 33 12 5 36 12 15 44 40 6 43 41 16 44 42 7 45 24 17 28 22 8 19 26 18 29 19 9 49 28 19 39 35 10 49 26 20 22 12 H0: μμ d ≤ 0 H1 : μμ d > 0 Click here for the Excel Data File State the decision rule for 0.05 significance level: H0: μd ≤ 0; H1: μd> 0. (Round your answer to 3 decimal places.) Compute the test statistic. (Round your answer to 3 decimal places.) Compute the p-value. (Round your answer to 3 decimal places.) State your decision about the null hypothesis. multiple choiceReject H0Do not reject H0 Next

Name: The amount of income spent on housing is an important component of the
Uploaded: 2024-03-20T07:07:12.000Z
Channel: Bartleby
Description: The amount of income spent on housing is an important component of the cost of living. The total costs of housing for homeowners might include mortgage payments, property taxes, and utility costs (water, heat, electricity). An economist selected a sa

Excel Procedure: Enter the data for five years ago and Now in Excel sheet>Data>Data Analysis>Select ‘t test: Paired two sample for Means’ and click on ‘OK’>Select the column of Five years ago under ‘Variable 1 Range’>Select the column of Now under ‘Variable 2 Range’>Enter 0 under ‘Hypothesized Mean Difference’>Click on ‘OK’. Excel Output: From the output, the one sided critical value is 1.729 Decision Rule: IF test statistic is greater than 1.729, then reject the null hypothesis. 1. Test statistic: From the output, the test statistic(t) is 2.258 1. p value: From the output, the p value(one sided) is 0.018 1. Decision: Here, the test statistic value is greater than the critical value. From the decision rule, reject the null hypothesis. Correct option: Reject H0

Answered: The amount of income spent on housing…

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

Topic Video

Question

The amount of income spent on housing is an important component of the cost of living. The total costs of housing for homeowners might include mortgage payments, property taxes, and utility costs (water, heat, electricity). An economist selected a sample of 20 homeowners in New England and then calculated these total housing costs as a percent of monthly income, 5 years ago and now. The information is reported below. Is it reasonable to conclude the percent is less now than 5 years ago?

Homeowner	Five Years Ago		Now	Homeowner		Five Years Ago	Now
1		17	%		10	%		11	35	%	32	%
2		20			39			12	16		32
3		29			37			13	23		21
4		43			27			14	33		12
5		36			12			15	44		40
6		43			41			16	44		42
7		45			24			17	28		22
8		19			26			18	29		19
9		49			28			19	39		35
10		49			26			20	22		12

H₀: μμ _d ≤ 0 H₁ : μμ _d > 0

Click here for the Excel Data File

State the decision rule for 0.05 significance level: H₀: μ_d ≤ 0; H₁: μ_d> 0. (Round your answer to 3 decimal places.)

Compute the test statistic. (Round your answer to 3 decimal places.)

Compute the p-value. (Round your answer to 3 decimal places.)

State your decision about the null hypothesis.

multiple choice

Reject H₀
Do not reject H₀

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 2 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

$Hypothesis Tests and Confidence Intervals for Means$

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, statistics and related others by exploring similar questions and additional content below.

Similar questions