The Eagle Ridge Contractors' Association Claims the Average Price of a Home

question 85

Multiple Choice

The Eagle Ridge Contractors' Association claims the average price of a home in their subdivision is
$125,150, with a standard deviation of $7,350. A sample of 36 homes for sale in this subdivision had an
average selling price of $123,550. Is there evidence that the costs of homes for sale in this subdivision are
actually lower than claimed?
-At a certain university, the average cost of books per student was $390 per student last semester. In a sample of 60 students this semester, their average cost was $425 with a standard deviation of $75.
The Dean of Students believes that the costs are greater this semester. What is the test statistic for this
Hypothesis?

• A) 0.47
• B) 0.58
• C) 3.61
• D) 28.00