According to an estimate, the average price of homes in Martha’s Vineyard, Massachusetts, was $650,000 in 2011 (USA TODAY, August 11, 2011). A recent random sample of 70 homes from Martha’s Vineyard showed that their average price is $674,000 with a standard deviation of $94,500. Using a 2% significance level, can you conclude that the current average price of homes in Martha’s Vineyard is different from $650,000? Use both the p-value and critical-value approaches.
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