Question: Question 4:

Two years ago, one out of every five sales of homes were made to a first time buyer. In a recent sample of 250 sales of homes, 39 were made to first time buyers. Has the percentage of home sales to first time buyers changed from what it was two years ago?

(a) State the parameter of interest.

(b) Clearly state the null and alternative hypothesis.

(c) Evaluate these two hypotheses for a significance level of 10%. In one or two sentences clearly spell out your conclusion.

(d) Assuming that the sample of 250 sales was randomly selected, estimate and interpret a 99% confidence interval for the parameter of interest.