Bob and Deb (no relation to your author) would like to retire someday and are considering relocating to cities where universities are present. Housing prices are a key factor in the decision. Bob, who happens to know a few things about statistics, would like to determine if the median selling price of a home in Columbia, South ­Carolina, is less than $ 150,000. The selling price of a random sample of 40 homes in Columbia was collected and the data are as follows.
Selling Price Number of Homes
Below $ 150,000 ....... 23
Equal to $ 150,000 ....... 2
Above $ 150,000 ....... 15
Using α = 0.10, perform a hypothesis test to determine if the median selling price is less than $ 150,000 for homes in Columbia, South Carolina.