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Module Five Assignment

The analysis aimed to determine if the average price per square foot in a regional real estate company is less than $280 using a sample of 750. The hypothesis test resulted in a p-value of 0.987, which is greater than the significance level of 0.05, leading to a failure to reject the null hypothesis. The findings were visually supported by a histogram indicating a right-tailed distribution.

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106 views3 pages

Module Five Assignment

The analysis aimed to determine if the average price per square foot in a regional real estate company is less than $280 using a sample of 750. The hypothesis test resulted in a p-value of 0.987, which is greater than the significance level of 0.05, leading to a failure to reject the null hypothesis. The findings were visually supported by a histogram indicating a right-tailed distribution.

Uploaded by

cmixon1237
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Hypothesis Testing for Regional Real Estate Company 1

Hypothesis Testing for Regional Real Estate Company

Crystal Mixon

Southern New Hampshire University


Hypothesis Testing for Regional Real Estate Company 2

Introduction

This analysis was intended to see if the average price of square footage is less than $280. I chose

my random sample of 750 by first creating a column labeled random and using the function

=rand(). I then sorted my samples by the random column. Finally, I deleted any samples beyond

the 750 I needed.

Hypothesis Test Setup

My population parameter was 1000.

Since p-value>0.05, we will not reject the null hypothesis.

I will use a right-tailed test.

Data Analysis Preparations

My sample size is 750, the sample mean is 266, the sample median is 203, and the sample

standard deviation is 167.459.

My sample is mainly on the left with a tail that goes off to the right.

The right-tailed test that I have chosen is the correct test.

The test significance level is α = .05


Hypothesis Testing for Regional Real Estate Company 3

Calculations

The sample mean is 266 and the standard error is 6.11.

The test statistic is -2.2395. The calculation is as follows (266 – 280)/6.11.

Excel Function Type of Test


=T.DIST.RT([test statistic], [degree of freedom]) Right-tailed

=T.DIST([test statistic], [degree of freedom], 1) Left-tailed

=T.DIST.2T([test statistic], [degree of freedom]) Two-tailed

Test Decision

The p-value with the right-tailed test is 0.98729114. The p-value is greater than the significance

level of 0.05.

Since p-value>0.05, we will fail to reject the null hypothesis.

Conclusion

My test decision relates to my hypothesis because the p-value is greater than the significance

level. After doing all my calculations which further showed my test related to my hypothesis, I

created a histogram. The histogram confirmed my calculations again by showing a right-tailed

graph.

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