A random sample of 10 contractors was asked to quote a price for a bathroom renovation in two different houses. The bathroom renovation was technically the same in each house, with the same amount of labour and materials required. One house was in a very wealthy neighbourhood, and the other was in a more run-down neighbourhood. The average difference was $1,262, with a standard deviation of $478. At the 5% level of significance, is there evidence that contractors quote higher prices for jobs in houses in wealthier neighbourhoods? Differences were calculated as (price for job in wealthy neighbourhood - price for job in rundown neighbourhood).You may assume the differences were normally distributed.

  • CreatedJuly 12, 2015
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