Share
Explore BrainMass

Hypothesis testing

Before I moved to California, I sold my home in Nevada. My realtor told me that the average price of a 2500 square foot home in Nevada was $250,000. I really didn't trust him, so I took a sample of 100 people with 2500 square foot homes in Nevada and found that the average price of a 2500 square foot home was $260,000 with a standard deviation of $5,000. Conduct a hypothesis test to determine if the average price of a 2500 square foot home in Nevada is really $250,000 or not . Assume that α = .05 and remember to clearly state the null and alternate hypothesis as well as your conclusion about the average price of a 2500 square foot home in Nevada.

$2.19