12
QuizMultiple Choice

Testing Claims about Means — Test

Question 12 • Statistics

A real-estate agent conducted an experiment to test the effect of selling a staged home vs. selling an empty home. To do so, the agent obtained a list of 10 comparable homes just listed for sale that were currently empty. He randomly assigned 5 of the homes to be "staged,” meaning filled with nice furniture and decorated. The owners of the 5 homes all agreed to have their homes staged by professional decorators. The other 5 homes remained empty. The hypothesis is that empty homes are not as appealing to buyers as staged homes and, therefore, sell for lower prices than staged homes. The mean selling price of the 5 empty homes was 150 dollars comma 000 with a standard deviation of 22 dollars comma 000 The mean selling price of the five staged homes was 175 dollars comma 000 with a standard deviation of 35 comma 000 A dotplot of each sample shows no strong skewness and no outliers. The agent tests ratio of cap h sub 0 to mu sub 1 minus mu sub 2 is equal to 0 , ratio of cap h sub A to mu sub 1 minus mu sub 2 is less than 0 , where mu sub 1 is equal to the true mean selling price of all comparable empty homes and mu sub 2 is equal to the true mean selling price of all comparable staged homes. Are the conditions for inference met for carrying out a t - test for a difference in means?

Answer
A
No, the Normal/large sample condition is not met.
B
Yes, all of the conditions for inference have been met.
C
No, the random condition is not met.
D
No, the 10 percent condition is not met.
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