Home values tend to increase over time under normal conditions, but the recession of 2008 and 2009 has reportedly caused the sales price of existing homes to fall nationwide ( BusinessWeek , March 9, 2009) You would like to see if the data support this conclusion The WEBfile named HomePrices contains data on 30 existing home sales in 2006 and 40 existing home sales in 2009 Please round answers to the nearest dollar Click on the webfile logo to reference the data 2006 ($1000s) 2009 ($1000s) 213100 155400 226200 189800 239100 200800 214300 280400 161700 213200 181200 181100 228600 117400 222100 130000 228900 170000 235800 149600 219400 146200 238800 54400 301800 213800 264200 186000 320200 182100 315000 180000 118900 215700 172400 164200 137500 95300 212800 239500 175400 207200 311400 188200 296900 169400 292500 185600 287700 177000 246500 178000 195600 161200 155300 249200 152400 146400 211200 99800 246700 173500 138100 112200 137500 147900 179000 116200 197500 164200 4 a Provide a point estimate of the difference between the population mean prices for the two years $ b Develop a 99 confidence interval estimate of the difference between the resale prices of houses in 2006 and 2009 $to $ c Would you feel justified in concluding that resale prices of existing homes have declined from 2006 to 2009 Why or why not

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Question: Home values tend to increase over time under normal conditions, but the recession of 2008 and 2009 has reportedly caused the sales price of existing

Home values tend to increase over time under normal conditions, but the recession of 2008 and 2009 has reportedly caused the sales price of existing homes to fall nationwide (BusinessWeek, March 9, 2009). You would like to see if the data support this conclusion. The WEBfile named HomePrices contains data on 30 existing home sales in 2006 and 40 existing home sales in 2009. Please round answers to the nearest dollar. Click on the webfile logo to reference the data.

2006 ($1000s)	2009 ($1000s)
213100	155400
226200	189800
239100	200800
214300	280400
161700	213200
181200	181100
228600	117400
222100	130000
228900	170000
235800	149600
219400	146200
238800	54400
301800	213800
264200	186000
320200	182100
315000	180000
118900	215700
172400	164200
137500	95300
212800	239500
175400	207200
311400	188200
296900	169400
292500	185600
287700	177000
246500	178000
195600	161200
155300	249200
152400	146400
211200	99800
246700
173500
138100
112200
137500
147900
179000
116200
197500
164200

a. Provide a point estimate of the difference between the population mean prices for the two years. $

b. Develop a 99% confidence interval estimate of the difference between the resale prices of houses in 2006 and 2009. $to $

c. Would you feel justified in concluding that resale prices of existing homes have declined from 2006 to 2009? Why or why not?

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