Question

A real estate agent believes that the values of houses in the neighborhood she works in have increased from last year. To test this claim, she selects random houses in this neighborhood and compares their estimated market values in the current year to their estimated market values in the previous year. Suppose that data were collected for a random sample of 8 houses, where each difference is calculated by subtracting the market value of the previous year from the market value of the current year. Assume that the values are normally distributed. What type of test is this hypothesis test?

Answer 1

Answer:

alternative hypothesis test

Explanation:

Remember, the alternative hypothesis test usually suggests that there is a chance of variation (difference) in the data observed.

Hence, since we are told the "real estate agent believes that the values of houses in the neighborhood she works in have increased (the chance of variation) from last year," and that "each difference is calculated by subtracting the market value of the previous year from the market value of the current year," we can reach the conclusion that this is an example of an alternative hypothesis test.