Question

There have been complaints recently from homeowners in the north end claiming that their homes have been assessed at values that are too high compare with other parts of town. They say that the mean increase from last year to this year has been higher in their part of town than elsewhere. To test this, the assessor's office staff plans to select a random sample of north end properties (group 1) and a random sample of properties from other areas within the city (group 2) and perform a hypothesis test. The following sample information is available:

North End Other
Sample Size 20 10
Sample Mean Increase $4,010 $3,845
Sample St. Deviations $1,800 $1,750

Assuming that the null hypothesis will be tested using an alpha level equal to 0.05, what is the critical value?
A) z = 1.578
B) t = 1.7011
C) t = 0.2388
D) t = 2.0484

Answer

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