Question: According to the Japanese National Land Agency, average land prices in central Tokyo soared 49% in the first six months of 1995. An international real estate investment company wants to test this claim against the alternative that the average price did not rise by 49%, at a 0.01 level of significance. (sample size 18, average 38%, standard deviation is 14). If the answer is yes, the investment company would claim a bulls-market and sell some of its holdings to avoid potential fall-downs. Should the investment company do so?
Expectations:
1. Answer questions with clarity and show the detailed steps for calculation
Chapter: Testing for statistical significant change using Variable Data
Brussee, Warren (2004) Statistics for Six Sigma Made Easy, Publisher: McGraw-Hill
ISBN: 9780071433853