A national real estate magazine advertised that 15% of first-time home buyers had a family income below $40,000. A national real estate firm believes this percentage is too low and samples 100 of its records. The firm finds that 25 of its first-time home buyers did have a family income below $40,000. Does the sample suggest that the proportion of first-time home buyers with an income less than $40,000 is more than 15%? Comment and write up your own conclusions based on an appropriate hypothesis test. Include any assumptions you made about the data.
Answer to relevant QuestionsWhich of the following are true? If false, explain briefly. a) A very low P-value provides evidence against the null hypothesis. b) A high P-value is strong evidence in favor of the null hypothesis. c) A P-value above 0.10 ...In the same 2012 survey conducted in Exercise 43, Gallup reported that 66% of American investors say that the federal budget deficit is hurting the U.S. investment climate “a lot.” Is there any evidence that the ...Games for the iPad have a distribution of prices that is skewed to the high end. a) Explain why this is what you would expect. b) Members of the iPad gamers club each own about 50 games. Pat is one such member. What would ...The analyst in Exercise 8 wants to know if the mean purchase amount of all transactions is at least $40. a) What is the null hypothesis? b) Is the alternative one- or two-sided? c) 'What is the value of the test statistic? ...A confidence interval for the price of gasoline from a random sample of 30 gas stations in a region gives the following statistics: y = + 4.49 SE1y2 = + 0.06 a) Find a 95% confidence interval for the mean price of regular ...
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