(Use Excel) the Following Are the Prices (In $1,000s) of 20

question 50

Essay

(Use Excel) The following are the prices (in $1,000s) of 20 houses sold recently in Vancouver, Washington. A real estate agent believes that the standard deviation of house prices is less than 70 units, where each unit equals $1,000. Assume house prices are normally distributed. a. State the null and the alternative hypotheses for the test.
B) Calculate the value of the test statistic.
C) Use Excel's function (either CHISQ.DIST.RT or CHISQ.DIST) to calculate the p-value.
D) At α = 0.10, what is the conclusion? Is the agent's claim supported by the data?

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Definitions:

Ending Inventory

The total value of all unsold goods and materials that a company holds at the end of an accounting period.

Gross Profit on Sales

The difference between sales revenue and the cost of goods sold before deducting overheads, taxes, or interest.

FIFO Retail Inventory Method

An accounting method for valuing inventory where the first items purchased are the first ones to be sold.

Freight-in Charges

The costs associated with transporting inventory to the buyer's location, often included in the cost of goods purchased.