Determine the critical value and p value for one mean large sample test.

1. Using the z table in Table E of Appendix C, find out the critical value for the left tailed test with a = 0.02.

A) 2.05

B) - 2.33

C) - 2.05

D) 2.33

2. The Eagle Ridge Contractors Association claims an 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?

What is the p-value for a one-sided test of the data provided above?

i) 0.0036

ii) 0.1327

iii) 0.0853

iv) 0.0951