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Answered

According to the national association of home builders the mean price of an existing single family home in 2018 was $395,000. A real estate broker believes that existing home prices in her neighborhood are lower.

Answer :

MrRoyalgo

Answer:

[tex]H_o:\mu = 395000[/tex]

[tex]H_a:\mu < 395000[/tex]

Step-by-step explanation:

Given

[tex]\mu = 395000[/tex] -- mean price

Required

Determine the null and alternate hypotheses

From the question, we understand that the mean price is:

[tex]\mu = 395000[/tex]

This represents the null hypothesis

[tex]H_o:\mu = 395000[/tex]

The belief that the home prices are lower represents the alternate hypothesis

Lower means less than

So, the alternate hypothesis is:

[tex]H_a:\mu < 395000[/tex]

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