Regional Real Estate Company
Scenario
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 adver”sement. The average cost per square foot of home sales based on this adver”sement 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 adver”sement would result in 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 adver”sement. In order to test his claim, you will generate a random sample size of 750 using data for
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.
