Hypothesis Testing for Regional Real Estate Company 1
Hypothesis Testing for Regional Real Estate Company
Lydia Firmin
Southern New Hampshire University
Hypothesis Testing for Regional Real Estate Company 2
Introduction
The analysis is to make sure that houses for sale in the Northeast region are at least under $280
per square foot. I got my sample of 250 by alphabetizing the page and taking the first 250 from
there.
Hypothesis Test Setup
Null: The cost per square foot is more than $280.
Alternative: The cost per square foot is less than $280.
Data Analysis Preparations
Sample Size: 250
Mean: $132
Median: $132
Standard Deviation: 25.6
The shape of the histogram is very skewed. It is left leaning and there is no center of the graph.
The sample is spread out between a few different pieces of the graph.
Hypothesis Testing for Regional Real Estate Company 3
Calculations
Sample Mean is $132
Standard Deviation is 25.6
P value is .75
Excel Function Type of Test
=T.DIST.RT([test statistic], [degree of freedom]) Right-tailed
=T.DIST([test statistic], [degree of freedom], 1) Left-tailed
=T.DIST.2T([test statistic], [degree of freedom]) Two-tailed
[Note: The degree of freedom is calculated by subtracting 1 from your sample size.]
Test Decision
I believe the null hypothesis is not correct. The prices seem to be lower than the aforementioned
$280.
Conclusion
The test results do relate to my alternative hypothesis. The prices are show to be more so less
than the $280 suggested by the salesperson. The conclusions are statistically significant and go
along with the idea that the hypothesis is correct.
