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

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