# Question

Real estate taxes are used to fund local education institutions, police protection, libraries, and other local public services. A household's real estate tax bill is based on the value of the house. In a recent year, the mean real estate tax bill per $1,000 assessed value for all households in a certain country was$8.37. A random sample of 50 rural households results in a sample mean real estate bill per $1,000 assessed value of$6.79 with a standard deviation of $6.31. Use the level of signifigance a = 0.05. _____________________________________________ A) Conduct a hypothesis test using the P-value approach and a level of signifigance of a = 0.05 to determine if the evidence suggests the mean real estate bill for rural households per$1,000 assessed value differs from that of all households.

Choose the correct hypotheses:

$$Ho: (choose \ option: p, \ \mu, \ or \ \sigma),(choose \ option: \ <, \ >, \ =, \ or \ does \ not\ equal)\ 8.37$$

$$H1: (choose \ option: p, \ \mu, \ or \ \sigma),(choose \ option: \ <, \ >, \ =, \ or \ does \ not\ equal)\ 8.37$$

_____________________________________________

B) Find the test statistic: t0=___.

_____________________________________________

C) Find the P-value: P-value=___.

_____________________________________________

D) Use the level of signifigance a=0.05. What can be concluded from the hypothesis test?

a) The evidence suggests that rural households have a different mean real estate tax bill.

b) The evidence does not suggest that rural households have a lower mean real estate tax bill.

c) The evidence does not suggest that rural households have a different mean real estate tax bill.

d) The evidence suggests that rural households have a lower mean real estate tax bill.

Source: www.chegg.com

Category: Taxes