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.
B) - 2.33
C) - 2.05
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?