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Topic 6 Homework (Nonadaptive) Question 5 of 11 (1 point)|Question Attempt: 1 of Unlimited

1 2 3 4 5 6 7 8 9 10 11 Question 5 Partially Correct (c): Your answer is incorrect. According to a high-profile realtor, houses in the sleepy town of Sun Beach have shown higher appreciation over the past three years than have houses in the bustling town of North Arden. To test the realtor's claim, an economist has found eight recently sold homes in Sun Beach and eight recently sold homes in North Arden that were owned for exactly three years. The following table gives the appreciation (expressed as a percentage increase) for each of the sixteen houses. Appreciation rates in percent Sun Beach 8.1, 13.7, 13.2, 13.7, 10.5, 10.9, 12.5, 10.4 North Arden 8.4, 7.5, 11.1, 10.5, 9.0, 6.0, 7.4, 10.8

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Send data to Excel Assume that the two populations of appreciation rates are normally distributed and that the population variances are equal. Can we conclude, at the 0.01 level of significance, that μ1, the mean appreciation rate of houses in Sun Beach, is higher than μ2, the mean appreciation rate of houses in North Arden? Perform a one-tailed test. Then complete the parts below.

Carry your intermediate computations to three or more decimal places and round your answers as specified in the table. (If necessary, consult a list of formulas.)

(a) State the null hypothesis H0 and the alternative hypothesis H1. H0:≤μ1μ2 H1:>μ1μ2 (b) Determine the type of test statistic to use. ▼t Degrees of freedom: 14 (c) Find the value of the test statistic. (Round to three or more decimal places.)

(d) Find the critical value at the 0.01 level of significance. (Round to three or more decimal places.) 2.624 (e) Can we conclude that μ1, the mean appreciation rate of houses in Sun Beach, is higher than μ2, the mean appreciation rate of houses in North Arden? Yes No

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