The Eagle Ridge Contractors' Association claims the average price of a home in their subdivision is
$125,150, with a standard deviation of $7,350. A sample of 36 homes for sale in this subdivision had an
average selling price of $123,550. Is there evidence that the costs of homes for sale in this subdivision are
actually lower than claimed?
-In a particular city, the average salary of secretaries is $29,000 per year. Secretaries at Company A claim that they are paid less than the city average. In a sample of 50 secretaries, their average salary was
$25,000 per year with a standard deviation of $5,000. What is the test statistic for this hypothesis?
A) -5.66
B) -0.80
C) 0.80
D) 5.66

Question

Quizplus · Accepted Answer

The test statistic is calculated using the formula: (sample mean - population mean) / (standard deviation / sqrt(sample size)). For the secretaries' salaries: (25000 - 29000) / (5000 / sqrt(50)) = -5.66.

The Eagle Ridge Contractors' Association Claims the Average Price of a Home