MATH 1300 module 3 Assignment 1 – Project for t-test

MATH 1300 week 3 Assignment

Project for t-test

Student Name

William Penn University

MATH1300

Professor Name

Submission Date

Will you conclude that people can bargain for price when purchasing a house, at 5% level of significance?

Paired Samples Test
		Paired Differences					t	df	Significance
		Mean	Std. Deviation	Std. Error Mean	95% Confidence Interval of the Difference				One-Sided p	Two-Sided p
					Lower	Upper
Pair 1	sellprice – listprice	-40.0000	42.8720	6.0630	-52.1841	-27.8159	-6.597	49	<.001	<.001

Ho: m1=m2

Ha: m1 <m2

T= -6.597, df= 49, p=.001 P=P(t<-6.597) =.001/2= .0005

Since P value < 0.05, we reject Ho.

Therefore, there is sufficient evidence to conclude that people can bargain price down when purchasing a house at 5% level of significance.

Will you conclude that 3 -bedroom houses is cheaper than 4-bedroom houses, at 1% significance level?

Independent Samples Test
		Levene’s Test for Equality of Variances		t-test for Equality of Means
		F	Sig.	t	df	Significance		Mean Difference	Std. Error Difference	95% Confidence Interval of the Difference
						One-Sided p	Two-Sided p			Lower	Upper
sellprice	Equal variances assumed	2.647	.111	-1.735	42	.045	.090	-196.897	113.460	-425.869	32.074
	Equal variances not assumed			-2.184	35.500	.018	.036	-196.897	90.141	-379.801	-13.994

Ho: m1= m2

Ha: m1< m2

Since P value > 0.01, we reject Ha.

T = -1.735, P=P (t< -1.735) = .090/2=0.045.

Based on the results of the independent samples t-test at a 1% significance level, we can conclude that there is a significant difference in mean prices between 3-bedroom and 4-bedroom houses. Specifically, the mean price of 3-bedroom houses is significantly higher than that of 4-bedroom houses. Therefore, we cannot conclude that 3-bedroom houses are cheaper than 4-bedroom houses.