Question:1. A bank employs two appraisers. When approving borrowers for mortgages, it is imperative that the appraisers value the same types of properties consistently. To make sure that this is the case, the bank evaluates six properties that the appraisers had valued recently.
Property
1
2
3
4
5
6
Apraiser 1
235,000
195,000
264,000
315,000
435,000
515,000
Apraiser 2
239,000
190,000
271,000
310,000
437,000
525,000
a. Enter the data into Minitab. Using the 5% level of significance determine whether there is a significant difference between the average values estimated by appraiser 1 and appraiser 2. Show and follow the 7 steps of hypothesis testing.
b. Construct a 95% confidence interval to estimate the average difference between appraisers. make a sentence or two using your result.
c. What assumption is required for this test? Use an appropriate graph or other method to determine if the assumption is met. Discuss your findings.