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Home sales tend to increase over time under normal conditions, but the recession of 2008 and 2009 has reportedly caused the resale price of existing homes to fall nationwide. You would like to see if the data support this conclusion. the file HomePrices contains data on 30 existing home sales in 2006 and 40 existing home sales in 2009.
a. Provide a point estimate of the difference between the population mean prices for the two years.
b. Develop a 99% confidence interval estimate of the difference between the reesale prices of houses in 2006 and 2009.
c. Would you feel justified in concluding that resale prices of existing homes have declined from 2006 to 2009? Why or why not?
2006 ($1000s) 213100 226200 239100 214300 161700 181200 228600 222100 228900 235800 219400 238800 301800 264200 320200 315000 118900 172400 137500 212800 175400 311400 296900 292500 287700 246500 195600 155300 152400 211200 2009 ($1000s) 155400 189800 200800 280400 213200 181100 117400 130000 170000 149600 146200 54400 213800 186000 182100 180000 215700 164200 95300 239500 207200 188200 169400 185600 177000 178000 161200 249200 146400 99800 246700 173500 138100 112200 137500 147900 179000 116200 197500 164200
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