Due to a recent decline in the housing market, the national median sales price for single-family homes is $180,000 (The National Association of Realtors, January 2009). Assume that the following data were obtained from samples of recent sales of single-family homes in St. Louis and Denver.

a. Is the median sales price in St. Louis significantly lower than the national median of $180,000? Use a statistical test with α = .05 to support your conclusion.
b. Is the median sales price in Denver significantly higher than the national median of $180,000? Use a statistical test with α = .05 to support your conclusion.

Transcribed Image Text:

Less Than $180,000 32 13 Equal to $180,000 Metropolltan Area St. Louis Denver Greater Than $180,000 18 27