Question

n 2018, homes in East Baton Rouge (EBR) Parish sold for an average of $239,000. You take a random sample of homes in Ascension parish and find that the average home sale price was $246,000 in 2018. You test the hypothesis that the mean of the home prices from Ascension parish is higher than the EBR mean. Suppose the p-value for the test is 0.045. At the 0.01 level of significance your conclusion is: (Choose the best answer)

Answer 1

Conclusion

There is no sufficient evidence to conclude that the mean of the home prices from Ascension parish is higher than the EBR mean

Explanation:

From the question we are told that

The population mean for EBR is
`\mu_ 1 = \$239,000`

The sample mean for Ascension parish is
`\= x_2 = \$246,000`

The p-value is
`p-value = 0.045`

The level of significance is
`\alpha = 0.01`

The null hypothesis is
`H_o : \mu_2 = \mu_1`

The alternative hypothesis is
`H_a : \mu_2 > \mu_1`

Here
`\mu_2` is the population mean for Ascension parish

From the data given values we see that

`p-value > \alpha`

So we fail to reject the null hypothesis

So we conclude that there is no sufficient evidence to conclude that the mean of the home prices from Ascension parish is higher than the EBR mean