You have been hired by the Regional Real Estate Company to help them analyze real estate data. One of the company's Pacific region salespeople just returned to the office with a newly designed advertisement. The average cost per square foot of home sales based on this advertisement is $280. The salesperson claims that the average cost per square foot in the Pacific region is less than $280. In other words, he claims that the newly designed advertisement would result in higher average cost per square foot in the Pacific Region. He wants you to make sure he can make that statement before approving the use of the advertisement. In order to test his claim, you will a random sample of size 750 houses using data for the Pacific region and use this data to perform a hypothesis test. Then, desi a hypothesis test and interpret the results using significance level = .05.

• Hypothesis Test Setup: Define your population parameter, including hypothesis statements, and specify the appropriate test.
  • 1. Define your population parameter.
  • 2. Write the null and alternative hypotheses.
  • 3. Specify the name of the test you will use.
  • 4. Identify whether it is a left-tailed, right-tailed, or two-tailed test.

	Cost per Square Foot
Sample Mean	$267
Median	$204
Std dev	166.3489553