Explore BrainMass

Explore BrainMass

    Two-sample Dependent or Matched pairs T-test

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Because of uncertainty in real estate markets, many homeowners are considering remodeling and constructing additions rather than selling. The most expensive room in the house to remodel is the kitchen, with an average cost of $23,400. In terms of resale value, is remodeling the kitchen worth the cost? The following cost and resale figures are published in a magazine for 11 cities:

    City Cost Resale
    Atlanta $20,427 $25,163
    Boston 27,255 24,625
    Des Moines 22,115 12,600
    Kansas City, MO 23,256 24,588
    Louisville 21,887 19,267
    Portland, OR 24,255 20,150
    Raleigh-Durham 19,852 22,500
    Reno 23,624 16,667
    Ridgewood, NJ 25,885 26,875
    San Francisco 28,999 35,333
    Tulsa 20,836 16,292

    * Calculate a two-sample dependent or matched pair's t-test for the above data

    * Construct a 99% confidence interval level for the difference between cost and
    added resale value of kitchen remodeling. Assume differences are normally

    * Test the hypothesis described in the problem

    * Use the five step process and analyze the results in relation to the information in
    the problem

    * Does it make sense to treat these variables (groups) as dependent or

    * Why would it matter?

    * What are the trade-offs of the two types of t-tests?

    © BrainMass Inc. brainmass.com June 3, 2020, 6:59 pm ad1c9bdddf

    Solution Summary

    This Solution contains calculations to aid you in understanding the Solution to this question.