Assigned Problem 1: It has been expressed by real estate professionals that swimming pools do not increase the value of a home. Conduct a hypothesis test for two independent samples to determine if the mean sales are different for homes with and without a pool. Use a .05 significance level. Describe your findings using proper statistical language. Note: that this problem requires an assumption that homes with a pool versus those without one are not much different otherwise; i. e., if those with a pool are in better locations, made of better materials, are newer and larger, then those homes will be worth more and it will not have anything to do with a pool. For the sake of simplicity, we will assume that the homes or without a pool have similar variability in them. Assigned Problem 2: We would like to find out how different two real estate agents can be in their appraisals of a property. Conduct a hypothesis test for paired samples and test if there is a difference in the mean appraisal prices given by these agents on the same homes. Use a .05 significance level. Describe your findings using proper statistical language.
Assigned Problem 3: If people are going to invest in their homes by constructing them out of brick, are they going to take the plunge and install a swimming pool? Conduct a hypothesis test of proportions to determine if the proportion of homes made of brick are more likely to have a swimming pool versus homes made of other materials. Use a .05 significance level. Describe your findings using proper statistical language.