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A prime factor in the economic troubles that started in 2008 was the end of the “housing bubble.” The file titled House contains data for a sample showing the average and median housing prices for selected areas in the country in November 2007 and November 2008. Assume the data can be viewed as samples of the relevant populations.
a. Discuss whether the two samples are independent or dependent.
b. Based on your answer to part a, calculate a 90% confidence interval for the difference between the means of the average and median selling prices for houses during November 2007.
c. Noting your answer to part b, would it be plausible to assert that the mean of the average selling prices for houses during the November 2007 is more than the average of the median selling prices during this period? Support your assertions.
d. Using a p -value approach and a significance level of 0.05, conduct a hypothesis test to determine if the mean of the average selling prices for houses during November 2007 is more than $30,000 larger than the mean of the median selling prices during this period. |
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