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If a Real Estate Market Is Strong There Will Be

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Essay

If a real estate market is strong there will be a close relationship between the asking price for homes and the selling price. Suppose that one analyst believes that the mean difference between asking price and selling price for homes in a particular market area is less than $2,000. To test this using an alpha level equal to 0.05, a random sample of n = 15 homes that have sold recently was selected. The sample differences between asking price and selling price are in the following table: If a real estate market is strong there will be a close relationship between the asking price for homes and the selling price. Suppose that one analyst believes that the mean difference between asking price and selling price for homes in a particular market area is less than $2,000. To test this using an alpha level equal to 0.05, a random sample of n = 15 homes that have sold recently was selected. The sample differences between asking price and selling price are in the following table:   Based on these sample data, what is the critical value expressed in dollars? Based on these sample data, what is the critical value expressed in dollars?


Definitions:

Merchantability

An implied warranty that a product will meet reasonable expectations of quality and usability for the purpose it was sold for.

Express Warranty

A statement by a seller about the quality, condition, or performance of a product that forms part of the contractual agreement between the buyer and seller.

Super Store

A large retail establishment offering a wide variety of goods, often at lower prices, under one roof.

Injury

Physical harm or damage to a person's body, often resulting from accidents or violence.

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