(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?

---

Definitions:

Risk-Free Rate

The theoretical return on investment with no risk of financial loss, typically represented by the yield on government bonds like U.S. Treasury securities.

Semistrong Efficient

A form of market efficiency that states all public information is already calculated into stock prices, and thus, no one can achieve higher returns by trading on that information.

Expected Returns

The anticipated return on an investment, taking into account all known risks and rewards associated with it.

Equilibrium

A condition or state in which economic forces are balanced, such as when supply equals demand in a market.