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Question: A bank employs two appraisers. When approving borrowers for mortgages, it is imperative that the appraisers value the same types of...

Question: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)

Property

1

2

3

4

5

6


Apraiser 1

235,000

195,000

264,000

315,000

435,000

515,000


Apraiser 2

239,000

190,000

271,000

310,000

437,000

525,000


a. 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)


b. Construct a 95% confidence interval to estimate the average difference between appraisers. make a sentence or two using your result. (4 points)



c. What assumption is required for this test? Use an appropriate graph or other method to determine if the assumption is met. Discuss your findings. (3 points)

Top Answer

a. Step 1: Ho:  μ ​ D ​ ​  = 0 Ha:  μ ​ D ​ ​ ≠  0 Step 2: Two tail  α  = 5% Step 3:... View the full answer

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