If a random sample of 28 homes south of Center Street in Provo has a mean selling price of $145,450 and a standard deviation of $4775, and a random sample of 25 homes north of Center Street has a mean selling price of $148,300 and a standard deviation of $5900, can you conclude that there is a significant difference between the selling price of homes in these two areas of Provo at the 0.05 level?
Ho: Mean1 = Mean2
Ha: Mean 1 does not equal Mean2
x-bar1 (south of Center Street) = 145,500 s1 = 4775, n1 = 28
x-bar2 (north of Center Street) = 148,300 s2 = 5900, n2 = 25
test statistic for the test is (x1-bar - x2-bar)/sqrt(s1^2/n1 + s2^2/n2)
If you put the values into the formula and calculate correctly, you should get
Make sure you understand how to get that
P-value was obtained from this site. http://www.socscistatistics.com/pvalues/tdistribution.aspx
Just enter the t-score of -1.919, 24 df two sides test and alpha = .05 and you get
b) the conclusion, since .0670 > .05, we have to accept Ho. So you
fail to reject Ho since there is not significant evidence of a
difference of means.
Remember when p-value > alpha, accept Ho and when p-value < alpha, reject Ho.