The amount of income spent on housing is an important compon

The amount of income spent on housing is an important component of the cost of living. The total costs of housing for homeowners might include mortgage payments, property taxes, and utility costs. An economist selected a sample of 20 homeowners in New England and then calculated total housing costs as a percent of monthly income, five years ago and now. The information is reported below. Is it reasonable to conclude the percent is less now than five years ago? Use the 0.05 level of significance. (answers to 3 decimal places)

Homeowner

Five Years Ago (%)

Now (%)

Homeowner

Five Years Ago (%)

Now (%)

1

17

10

11

35

32

2

20

39

12

16

32

3

29

37

13

23

21

4

43

27

14

33

12

5

36

12

15

44

40

6

43

41

16

44

42

7

45

24

17

28

22

8

19

26

18

29

19

9

49

28

19

39

35

10

49

26

20

22

12

Hint: compute the difference (positive d means costs greater, negative means costs less. You might find it convenient to transcribe the data to a spreadsheet.

Here

Homeowner	Five Years Ago (%)	Now (%)	Homeowner	Five Years Ago (%)	Now (%)
1	17	10	11	35	32
2	20	39	12	16	32
3	29	37	13	23	21
4	43	27	14	33	12
5	36	12	15	44	40
6	43	41	16	44	42
7	45	24	17	28	22
8	19	26	18	29	19
9	49	28	19	39	35
10	49	26	20	22	12

Solution

find the average of then and now and compare
then =663/20=33%
now =540/20=27%
answer=yes