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# Hypothesis

See attached file.

Consider the file data on Taxes that is included in worksheet P2 on the exam template. This data represents property taxes paid by 170 residents that live in a small town. Assume this file to be the entire population. Answer the following questions:

a. A local politician in this town has stated that the average property taxes are \$1800 and most people do not pay more than this amount. Conduct a test at the ? = .01 level to determine if this is true. For this test, consider a sample size of 30 households. Also, you want to have strong evidence to disclaim his hypothesis.
b. Find the probability of a Type two error when U = 2200
c. Conduct the same test as in part a, however, use sampling data by taking the fist 50 data points in the population
d. Conduct a test at the alpha = .05 level to determine if there is a difference between taxes paid in neighborhood 1 and in neighborhood 4. Use all the data points from both neighborhoods and consider this to be sample data.
e. From part d, what is the 95% confidence interval for the difference between means

#### Solution Summary

A Complete, Neat and Step-by-step Solution is provided in the attached file.

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