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Find the test statistic value and critical value at α = 0.035.
The Eagle Ridge Contractors Association claims the average price of a home in their subdivision is $125,150 with a standard deviation of $7,350. A sample of 36 homes for sale in this subdivision had an average selling price of $123,550. Is there evidence that the costs of homes for sale in this subdivision are actually lower than claimed?
1. At a = 0.05, what is the test value?
A) 1.31
B) -1.52
C) 1.52
D) -1.31
2. Using the z table in Table E of Appendix C, determine the critical value for the hightailed test with a = 0.035.
A) 1.81
B) 0.39
C) 2.11
D) 2.05
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