Given data:
Scott

Ligonier

step 1: State the null hypothesis (H₀) and alternative hypothesis (H1)

step 2: Find the critical value with a significance σ= 0.01
The critical value- two-tailed is: -2.576 and 2.576
Note that,

step 3:
Find the z-score
![\begin{gathered} z=\frac{(X_1-X_2)-(\mu_1-\mu_2)}{\sqrt{(\sigma^2_1)/(n_1)+(\sigma^2_1)/(n_1)}} \\ z=\frac{(93,430-98,043)-0}{\sqrt[]{(5602)/(35)^2+(4731)/(40)^2_{}}} \\ z=(-4613)/(1206.73) \\ z=-3.823 \end{gathered}](https://img.qammunity.org/2023/formulas/mathematics/college/o8jwlvohrvxtbbxww3tbl1kjyd55enj7kf.png)
step 4: Since, z= -3.823 < -2.576 (critical value)
Therefore, we reject the null hypothesis - we can conclude that there is enough evidence to reject the claim that the average cost of a home in both locations is the same.
There is a significant difference in house prices.