Question

You are the sales manager for a large condominium development in Sacramento, California. You are interested in determining how much to price your units for and have collected information on 87 equivalent condominiums that have sold in the past two months in Sacramento. After having sold 21 of your condominium units (out of 150), you are interested in evaluating whether your units are selling for significantly more than the other 87 Sacramento condos. In order to determine if your condos are, on average, selling for more than the other 87 you would use a: Question 8 options: A one-sided, one-sample t-test A two-sided, one-sample t-test A one-sided, two-sample t-test A two-sided, two-sample t-test

Answer 1

A one-sided, two-sample t-test

Explanation:

In the context, the values of the population standard deviations are not provided, therefore we have to use the two sample t tests for the difference between the two population means. This claim for the hypothesis or the alternative hypothesis is given as the average selling price is more for the first group of the sample size of 21 as compared to the other group of the sample size of 87. Therefore, we perform an one sided test or the upper tailed test.