A real estate agent wishes to determine whether tax assessors and real estate appraisers agree on the vales of homes. A random sample of the two groups appraised 10 homes. The mean and standard deviations are shown below. Is there a significant difference in the values of the homes for each group? Let
Test the hypothesis that the two appraisers differ in their appraisal values of the 10 homes. Solve using the traditional method.
Tax Assessors:
mean = $87,344
S1= $2252
n1 = 10
Real Estate Appraisers:
mean= $84,856
S2= $3175
n2 = 10