Hypothesis Testing for Regional Real Estate Company

You have been hired by the Regional Real Estate Company to help them analyze real estate data. One of the company’s Pacific region salespeople just returned to the office with a newly designed advertisement. The average cost per square foot of home sales based on this advertisement is $280. The salesperson claims that the average cost per square foot in the Pacific region is less than $280. In other words, he claims that the newly designed advertisement would result in a higher average cost per square foot in the Pacific Region. He wants you to make sure he can make that statement before approving the use of the advertisement. To test his claim, you will generate a random sample size of 750 using data from the Pacific region and use this data to perform a hypothesis test.

Prompt
Generate a sample of size 750 using data for the Pacific region. Then, design a hypothesis test and interpret the results using significance level α = .05. You will work with this sample in the assignment. Briefly describe how you generated your random sample.

Hypothesis Testing for Regional Real Estate Company

A representative from Region Real Estate Company claims that a new advertisement will yield a higher price per square foot within the Pacific Region. The cost per square foot in sales of homes according to the advertisement is $280, which, according to the salesperson, is lower than $280. Therefore, the goal of this study is to confirm that the claims of the salesperson are true by analyzing the real estate market data.

Introduction

I made random numbers by using Excel’s data analysis program. I chose a minimum value that was $213, and a maximum of $787. Its value in the sample was 707. Based on these numbers I was able to create a six random figure and a frequency that was 1. I then feed this data to the program for data analysis in Excel which produced the figures I used for the analysis.

Setup

The goal means in the study is $280. the value of the sample’s n is the value of 750.

The Null Hypothesis The cost per square foot for the Pacific Region is equal to $280.

Other hypothesis The cost per square foot for the Pacific Region is less than $280.

The test will be based on data from the Pacific Region data and it will be left-tailed. The tests will be conducted by using t-statistics, and the T.DIST formula as the data is left-tailed.