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A Real Estate Agency Wants to Compare the Appraised Values

Question 68

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A real estate agency wants to compare the appraised values of single-family homes in two cities in Michigan. A sample of 60 listings in Lansing and 99 listings in Grand Rapids yields the following results (in thousands of dollars): A real estate agency wants to compare the appraised values of single-family homes in two cities in Michigan. A sample of 60 listings in Lansing and 99 listings in Grand Rapids yields the following results (in thousands of dollars):   -(A) Is there evidence of a significant difference in the average appraised values for single-family homes in the two Michigan cities? Use 0.05 level of significance. ​ (B) Have any of the assumptions made in (A) been violated? Explain. ​ (C) Construct a 95% confidence interval estimate of the difference between the population means of Lansing and Grand Rapids. ​ (D) Explain how to use the confidence interval in (C) to answer (A).
-(A) Is there evidence of a significant difference in the average appraised values for single-family homes in the two Michigan cities? Use 0.05 level of significance.

(B) Have any of the assumptions made in (A) been violated? Explain.

(C) Construct a 95% confidence interval estimate of the difference between the population means of Lansing and Grand Rapids.

(D) Explain how to use the confidence interval in (C) to answer (A).

Correct Answer:

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(A) Populations: 1 = Lansing, 2 = Grand ...

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