Use the following to answer questions :
The Eagle Ridge Contractors Association claims the average price of a home in their subdivision is $125,150 with a standard deviation of $7,350. A sample of 36 homes for sale in this subdivision had an average selling price of $123,550. The Eagle Ridge Home Owners Association is interested in knowing if the costs of homes for sale in this subdivision are actually lower than claimed?
-What is the p-value for this left-tailed test?
A) 0.0853
B) 0.0951
C) 0.1327
D) 0.0036

Question

Quizplus · Accepted Answer

The test statistic is calculated using the formula: z = (X̄ - μ) / (σ/√n). Here, X̄ = 123,550, μ = 125,150, σ = 7,350, and n = 36. The calculated z-value is approximately -1.645. Using a standard normal distribution table, the p-value corresponding to z = -1.645 is approximately 0.0951.

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