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

question 8

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:

Direct Method

A way of presenting a cash flow statement where actual cash flows from operating activities are disclosed, as opposed to estimating them indirectly through differences in non-cash items.

Cash Flows

The aggregate sum of cash inflows and outflows in a business, significantly impacting its ability to meet short-term obligations.

Investing Activities

Financial activities related to the acquisition and disposal of long-term assets and other investments not included in cash equivalents.

Buying Stocks

The act of purchasing shares in a company with the expectation of earning a return on investment through dividends or stock price appreciation.