On paper ch 10.docx - 1 A bank employs two appraisers When...

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1. A bank employs two appraisers. When approving borrowers for mortgages, it is imperative that the appraisers value the same types of properties consistently. To make sure that this is the case, the bank evaluates six properties that the appraisers had valued recently. (15 points) A) Steps: 1. Enter the data into Minitab. Using the 5% level of significance determine whether there is a significant difference between the average values estimated by appraiser 1 and appraiser 2. Show and follow the 7 steps of hypothesis testing. . (8 points 2. H0: There is not a significant difference between average values estimated by each appraiser. H1: There is a significant difference between average values estimated by each appraiser. 3. a= 0.05 4. t distribution Decision rule: reject H0 if p-value is less than significance level of .05 5. 6. Our P-value = 0.430, which is greater than the significance level of 0.05. We must fail to reject the null hypothesis. 7. At a= .05, there is insufficient evidence that there is a significant difference between the average values estimated by each appraiser. Paired T-Test and CI: C1, C2 Descriptive Statistics Sampl e N Mean StDev SE Mean C1 6 32650 0 12410 3 50665 C2 6 32866 7 12745 6 52034 T- Value P- Value -0.86 0.430
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Estimation for Paired Difference Mea n StDe v SE Mean 95% CI for μ_differenc e - 2167 6178 2522 (-8650, 4317) µ_difference: mean of (C1 - C2) Test Null hypothesis H₀: μ_difference = 0 Alternative hypothesis H₁: μ_difference ≠ 0 T- Value P- Value -0.86 0.430 b.
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  • Fall '12
  • Inoue
  • Statistics, Null hypothesis, Statistical hypothesis testing, significance level

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