Question

Cost of Building a Home According to the National Association of Home Builders, the average cost of building a home in the Northeast is per square foot. A random sample of new homes indicated that the mean cost was and the population standard deviation was . Can it be concluded that the mean cost differs from , using the level of significance

Answer 1

Answer:

There isn't sufficient evidence that support the claim that mean cost differs from $117.91

Step-by-step explanation:

Given that :

Population Mean cost, μ = 117.91

Sample size, n = 36

Sample mean, xbar = 122.57

Sample standard deviation, s = 20

The hypothesis :

H0 : μ = 117.91

H0 : μ ≠ 117.91

Using the one sample t test :

Test statistic

(xbar - μ) ÷ s/sqrt(n)

T = (122.57 - 117.91) ÷ 20/sqrt(36)

T = 4.66 / 3.333

T = 1.398

Decision region :

Reject H0 ; If Pvalue < α

α = 0.10

Degree of freedom, df = n - 1 = 36 - 1 = 35

Pvalue(1.398, 35) = 0.1709

Since 0.1709 > 0.10 ; WE fail to reject H0 ; therefore there isn't sufficient evidence that support the claim that mean cost differs from $117.91