Assignment 5 2011

# Assignment 5 2011 - Jordan Cur teanu 30962096 Assignment 5...

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Jordan Curteanu 30962096 Assignment 5 Question 1 – Real Estate and Real t-tests a) i. The population being examined is listed homes with fireplaces. ii. The population being examined is listed homes without fireplaces. b) Mean Price : H0 The mean price of homes with fireplaces is the same as the mean price of homes without fireplaces. : Ha The mean price of homes with fireplaces is different than the mean prices of homes without fireplaces. : = H0 μfireplaces μno fireplaces : Ha μfireplaces μno fireplaces = - - - t x1 x2 ∆oSEx1 x2 = - - + t x1 x2 ∆os12n1 s22n2 = , - , . + . t 189 323 111 00659827 36 250 34131 12250 = . t 8 04

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= + - + - df s12n1 s22n221n1 1s12n12 1n2 1s22n12 = . + . - . + - df 59827 36250 34131 122502150 159827 362502 150 . 134131 122502 = . df 77 84 Mean Living Area : H0 The mean living area of homes with fireplaces is the same as the mean living area of homes without fireplaces. : Ha The mean living area of homes with fireplaces is different than the mean living area of homes without fireplaces. : = H0 μfireplaces μno fireplaces : Ha μfireplaces μno fireplaces = . t 6 42 = df 75 For critical values, we find that for a two sided 0.01 (very strong) critical value for a t with 75 df is t =2.643. Our observed t-value is larger than this, so we could reject the null hypothesis at the 0.01 level.
Our analysis found that the difference in mean living area for homes with fireplaces compared to those without fireplaces was statistically significant with a P-value < 0.001. So we conclude that the difference in mean living area is real between the two populations. Mean Age

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## This note was uploaded on 09/01/2011 for the course COMM 291 taught by Professor E.fowler during the Winter '10 term at UBC.

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Assignment 5 2011 - Jordan Cur teanu 30962096 Assignment 5...

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