Question

All house sales transactions (in R1000) concluded in two cities during a particular week are
checked. The selling price of each house is noted. The following information is obtained:
Town A Town B

Answer 1

Assume the missing data is:

Find the test statistic value.

Solution:

$H_0:\mu_1=\mu_2 \\H_1:\mu_1>\mu_2$

Test statistic,$z_0=\dfrac{(\bar x_1-\bar x_2)-(\mu_1-\mu_2)}{\sqrt{\dfrac{\sigma_1^2}{n_1}+\dfrac{\sigma_2^2}{n_2}}}$

$=\dfrac{(13585-13600)-(0)}{\sqrt{\dfrac{1024}{51}+\dfrac{1024}{34}}} \\=-2.1172$