Answer Happy

The crisis in the real estate market caused the listing prices of homes in certain areas to fall from previous years. A real estate office would like to sample 48 new listings randomly to test the hypothesis that the current listing price average is less than $244,000, the average in the previous year. Assume the standard deviation for the price of homes in this market is $45,000. Complete parts a through d below. a. Explain how Type I and Type II errors can occur in this hypothesis test. A Type I error can occur if the average listing price is above or equal to $244,000 and the null hypothesis is rejected. A Type II error can occur if the average listing price is below $244,000 and the null hypothesis is not rejected. b. Using a = 0.10, calculate the probability of a Type Il error occurring if the actual average listing is $225,000 The probability of committing a Type Il error is (Round to three decimal places as needed.)