A real estate agent has collected a random sample of 75 houses that were recently sold in a suburban community. She is particularly interested in comparing the appraised value and recent selling price of the houses in this particular market. The values of these two variables for each of the 75 randomly chosen houses are provided in the file P08_24.xlsx. Using these sample data, test whether there is a statistically significant mean difference between the appraised values and selling prices of the houses sold in this suburban community. Report a p-value. For which levels of significance is it appropriate to conclude that no difference exists between these two values? Which is more appropriate, a one-tailed test or a two-tailed test? Explain your reasoning.

  • CreatedApril 01, 2015
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