4
QuizMultiple Choice

Testing a Claim about a Population Mean

Question 4 • Probability and Statistics with Applications Honors Sem-2-FL-1210300 (2024-2025)

The mean price of houses in the US is $383,500. A real estate agent believes the mean price of houses in a local neighborhood is less than the national mean. The agent takes a random sample of 30 houses and finds the mean price to be $295,089 with a standard deviation of $156,321. Do the data provide convincing evidence at the level that the mean price of the houses in the area is less than $383,500?What are the test statistic and P-value for this significance test?Find the t-table here and the z-table here.

Question illustration
Answer
A
t = 3.10 and 0.001 < P-value < 0.0025
B
z = 3.10 and 0.001 < P-value < 0.0025
C
t = –3.10 and 0.001 < P-value < 0.0025
D
z = –3.10 and 0.001 < P-value < 0.0025
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The mean price of houses in the US is $383,500…