Question

According to the Federal Housing Finance Board, the mean price of a single-family home two years ago was $299,500. A real estate broker believes that because of the recent credit crunch, the mean price has increased since then. The null hypothesis is not rejected.
State the conclusion based on the results of the test.

A.There is sufficient evidence to conclude that the mean price of a single-family home has increased from its level two years ago of $299,500.

B.There is not sufficient evidence to conclude that the mean price of a single-family home has decreased from its level two years ago of $299,500.

C.There is sufficient evidence to conclude that the mean price of a single-family home has decreased from its level two years ago of $299,500.

D.There is not sufficient evidence to conclude that the mean price of a single-family home has increased from its level two years ago of $299,500.

Answer 1

Answer: A.There is sufficient evidence to conclude that the mean price of a single-family home has increased from its level two years ago of $299,500

Explanation:

From the question, we are informed that according to the Federal Housing Finance Board, the mean price of a single-family home two years ago was $299,500 and that a real estate broker believes that due to recent credit crunch, the mean price has increased since then and the result is that the null hypothesis is not rejected.

The conclusion based on the results of the test is that since the null hypothesis has been rejected, it simply means that there are sufficient evidence that there has been an increase in the mean price since two years ago.

Therefore, option A is the correct answer.