Let X be the population of house prices in a large city. Assumethat the population distribution of house prices is normal [i.e., X~ N(μ, σ2)]. A random sample of 10 house prices (in thousands of $)provided the following data:
90 100 115 72 125 95 105 135 120 88
Find the standard error of the sample mean (?Ì…). Show yourcalculations.
Write out the null and alternative hypotheses for determiningwhether the population mean
differs from 90 (thousand $).
Write out the decision rule for the question in (b).
Find the calculated test-value for the question in (b). Showyour calculations.
Find the 10%, 5%, and 1% critical values for the question in(b).
Do you reject the null hypothesis in (b)? Explain clearly.
The p-value for the question in (b) is 0.041. What does thep-value mean, and how does it
change your conclusion in (f)? Explain clearly.
