Data were collected from the sale of 25 properties by a local real estate agent. The following printout concentrated on the land value variable from the sampled properties.

Suppose we are interested in testing whether the mean land value from this neighborhood differs from 48,362. Which hypotheses would you test?

Solution: If we are interested in testing whether the mean land value from this neighborhood differs from 48,362, we have to test the hypotheses

For this two-tailed test we have the p-value p = 0.0959288. This means that we fail to reject the null hypothesis. In other words, we don’t have enough evidence to support the claim that the mean land value from this neighborhood differs from 48,362.

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