Question

three years ago, the mean price of an existing single - family home was $243,758. a real estate broker believes that existing home prices in her neighborhood are higher
(a) state the null and alternative hypotheses in words
(b) state the null and alternative hypotheses symbolically
(c) explain what it would mean to make a type i error
(d) explain what it would mean to make a type ii error

b. the mean price of a single family home in the brokers neighborhood is $243,758
c. the mean price of a single family home in the brokers neighborhood is different from $243,758
d. the mean price of a single family home in any neighborhood is $243,758
state the alternative hypothesis in words. choose the correct answer below.
a. the mean price of a single family home in any neighborhood is $243,758.
b. the mean price of a single family home in the brokers neighborhood is different from $243,758.
c. the mean price of a single family home in the brokers neighborhood is $243,758.
d. the mean price of a single family home in the brokers neighborhood is greater than $243,758
(b) state the hypotheses symbolically
h₀: $
h₁: $
(type integers or decimals. do not round.)

Explanation:

Step1: Identify the null hypothesis concept

The null hypothesis \(H_0\) is a statement of no - difference or no - effect. Here, it assumes the mean price is the same as the historical value.
\(H_0:\mu = 243758\)

Step2: Identify the alternative hypothesis concept

The real - estate broker believes the prices are higher. The alternative hypothesis \(H_1\) is what we are trying to find evidence for.
\(H_1:\mu> 243758\)

Answer:

\(H_0:\mu = 243758\)
\(H_1:\mu> 243758\)