Question: For the following exercises where applicable: a. State the hypotheses and identify the claim. b. Find the critical value(s). c. Compute the test value. d.

For the following exercises where applicable:

a. State the hypotheses and identify the claim.
b. Find the critical value(s).
c. Compute the test value.
d. Make the decision.
e. Summarize the results.
Use the traditional method of hypothesis testing unless otherwise specified. Assume all variables are normally distributed.

A real estate agent believes that the average closing cost of purchasing a new home is $6500 over the purchase price. She selects 40 new home sales at random and finds that the average closing costs are $6600. The standard deviation of the population is $120. Test her belief at α = 0.05.

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a The hypotheses is called the test hypothesis and reads The average closing cost of a new home is 6... View full answer

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