The mean rent price for condo in Florida is $ 780. We want to know whether the m

Question

The mean rent price for condo in Florida is $ 780. We want to know whether the mean rent price in Orlando is the same as the rest of Florida. Null Hypothesis (Hypothesized Test Value): Population mean-780. A random sample of 50 condos rented in Orlando was taken. The mean was $ 800 and the standard deviation of the sample is $ 100. Answer the following question. EXHIBIT2 According to EXHIBIT 2 Hypothesis Test about a Population Mean: Sigma Unknown Case 50 Sample Size Sample Mean 800 100 Standard Deviation Sample Hypothesized Test Value 780 Standard Error Test Statistic t Degrees of Freedom Alpha Critical Value (two tail) + or 14.142 1.414 49 0.05 2.010

Explanation / Answer

WE want to test if mean rent price in Orlando is same as in Florida, so we will use Two Tailed Test.

We are testing at 5% significance as alpha is 0.05

p-value for two tailed test is 0.163622 which is larger than 0.05

Hence we reject Null Hypothesis in favour of Alternative Hypothesis

ANSWER: be rejected

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