Suppose you want to buy a three-bedroom property in Sydney and you are interested two main suburbs (Suburb 1 and Suburb 2) but you don’t know which one has higher average price

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Suppose you want to buy a three-bedroom property in Sydney and you are interested two main suburbs (Suburb 1 and Suburb 2) but you don’t know which one has higher average price

Question 

Suppose you want to buy a three-bedroom property in Sydney and you are interested two main suburbs (Suburb 1 and Suburb 2) but you don’t know which one has higher average price. So you determined to do a research and see whether there is a significant difference of market price in these two suburbs. You are required to:

  • Randomly select a sample of 30 properties in Suburb 1and another 30 properties in Suburb 2 and record their market prices. Thus, a total of 60 observations are recorded in your dataset.
  • What are populations you are interested in?
  • Conduct your analysis using hypothesis testing Note: Check the conditions for the test identified.
  • What conclusion you can make from the results for your decision making?
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