A Local Real Estate Agent Claims That the Median Selling $$z = \frac { ( 53 + .5 ) - \left( .5 ^ { * } 100 \right) } { .5 * \sqrt { 100 } } = \frac { 3.5 } { 5 } = .70$$

Multiple Choice

A local real estate agent claims that the median selling price of homes in a major midwestern city is more than $200,000.Suppose a random sample of 100 homes sold in the last six months is taken and 53 sold for over $200,000.Using ? = .01,test the real estate agent's claim.What do you conclude about the selling prices of the homes?

A) Reject the null hypothesis.
B) Do not reject the null hypothesis.
$$z = \frac { ( 53 + .5 ) - \left( .5 ^ { * } 100 \right) } { .5 * \sqrt { 100 } } = \frac { 3.5 } { 5 } = .70$$