Hypothesis testing-before and after

Reference no: EM13110526

1. The amount of income spent on housing is an important component of the cost of living. The total costs of housing for homeowners might include mortgage payments, property taxes, and utility costs (water, heat, electricity). An economist selected a sample of 20 homeowners in New England and then calculated these total housing costs as a percent of monthly income, five years ago and now. The information is reported below. Is it reasonable to conclude the percent is less now than five years ago?

Homeowner Five Years Ago Now Homeowner Five Years Ago Now

1 17% 10% 11 35% 32%

2 20 39 12 16 32

3 29 37 13 23 21

4 43 27 14 33 12

5 36 12 15 44 40

6 43 41 16 44 42

7 45 24 17 28 22

8 19 26 18 29 19

9 49 28 19 39 35

10 49 26 20 22 12

Reference no: EM13110526

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