Formulate both a numerical and verbal hypothesis statement regarding your research issue. - 250 words (includes introduction)
Verbal: The average (mean) cost of a three bedroom home is less than or equal to $250,000.
Null Hypothesis: Ho: u < $200,000
Alternate Hypothesis: Ha u > $200,000
We all know the average cost is probably more that $250K but most researchers set up the null hypothesis to be rejected.
Please see attachment with needed information.
Please cite all sources. Thank you in advance for your help.
Introduction: In this problem, a hypothesis test for one sample mean is performed to test the claim that the average house price is more than $200,000. The test is claimed at the default value of the level of significance as 0.05, which is also the probability of committing a Type I error. The null hypothesis is rejected if the p-value, which is indicative of the probability that the ...
The solution discusses how sample hypothesis testing for real estate is formulated.