(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:

Isolated

Being apart from others; a situation or condition in which a person or entity has minimal contact or interaction with others.

Individualistic

Characterized by independence and self-reliance, prioritizing personal goals over group objectives.

Social Structures

The complex framework of societal institutions (like laws, economy, and social roles) and the patterns of relationships between individuals and groups within a society.

Micro

relates to something that is extremely small in scale or scope, often used in contexts like microeconomics, which deals with individual and business decisions.