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

question 94

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:

Plantwide Predetermined

A method that assigns overhead costs to products based on a single predetermined overhead rate for the entire factory or plant.

Manufacturing Overhead

Refers to all the indirect costs associated with the production process, excluding direct materials and direct labor costs.

Machine-Hours

A unit of measure reflecting the amount of time a machine is operated.

Plantwide Predetermined

The determination of a single overhead rate that is applied throughout an entire plant or facility, irrespective of individual processes.