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 Alpha = 0.05 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.
t = 3.10 and 0.001 < P-value < 0.0025
z = 3.10 and 0.001 < P-value < 0.0025
t = –3.10 and 0.001 < P-value < 0.0025
z = –3.10 and 0.001 < P-value < 0.0025