Answer:
H0 : Average price of homes sold in US = 24000 ; H1 : Average price of homes sold in US ≠ 24000
t calculated value = 2 , t critical (tabulated) value = 1.96
calculated t > critical t . Null Hypothesis is rejected, It is concluded that 'Average price of homes sold in US ≠ 24000 '
Explanation:
Null Hypothesis : Average price of homes sold in US = 24000
Alternate Hypothesis : Average price of homes sold in US ≠ 24000
t = (x' - u) / (s / √n)
x' = sample mean = 246000 (given)
u = population mean = 240000 (given)
s = standard deviation = 36000
n = no. of observations = 144
t = (246000 - 240000) / (36000/√144)
6000/ (36000/12000) = 6000/3000
t = 2
Critical value for a two tailed test at 5% significance level, 0.025 in t distribution = 1.96
Since calculated value, 2 > tabulated or critical value at significance level, 1.96. So, we reject the null hypothesis. This implies that <u>'Average price of homes sold in US ≠ 24000</u>'
