Hypothesis Testing For Regional Real Estate Company

Hypothesis Testing for Regional Real Estate CompanySouthern New Hampshire University 02:30:28 GMT -05:00IntroductionThe purpose of this analysis is to identify the mean cost per square foot since the claim is that the mean cost is less than $280 in the Pacific region. In Microsoft Excel, I created another column and used the =RAND() function to generate random numbers for each set. I then sorted the data by that random column and chose the first 750 houses.Hypothesis Test SetupThe null hypothesis is that the mean is equal to $280, and the alternative hypothesis is that the mean is less than $280. I will use a left-tailed test because we want to identify whether the alternative hypothesis is less than the target ($280).Data Analysis PreparationsSample size: 750Mean: $265Median: $203Standard deviation: 165.895 02:30:28 GMT -05:00The histogram has a bias toward the left side which means that it is a right-skewed distribution. This means that there is a large number of data on the left side and a fewer amount of data on the right.CalculationsSample mean: $265Standard error: 6.0567Test statistic: -2.493P-value: 0.00644Excel FunctionType 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<span