a) About 95% of the time the rent increases by $80. b) We are 95% confident that

Question

a) About 95% of the time the rent increases by $80.

b) We are 95% confident that the average increase in rent is between about $0 and $160.

c) There is about a 3% chance that the rents are higher for two-bedroom apartments.

d) The standard deviation of the increase in rent is about $40.

2)

3)Is the average rent for a two-bedroom apartment more than the average rent for a one-bedroom apartment? A sample of 10 advertisements of each type was collected and the rent (in dollars) for each suite was found. Here are some preliminary statistics:

Is the average rent for a two-bedroom apartment more than the average rent for a one-bedroom apartment? A sample of 10 advertisements of each type was collected, the rent (in dollars) for each suite was found, and the following is computer output of the analysis:

Which of the following is correct?

a)

b)

C)
D)

3)Is the average rent for a two-bedroom apartment more than the average rent for a one-bedroom apartment? A sample of 10 advertisements of each type was collected and the rent (in dollars) for each suite was found. Here are some preliminary statistics:

Which of the following is correct?
a) Because 10 advertisements of each type were found, a matched pairs design could be used.
b) About 95% of one-bedroom apartments have rents between $470 and $590.
c) Because the two standard deviations are about equal, there is no evidence that the average rents are different.
d) The standard errors measure how much the average rent for each class could vary if new samples of size 10 were taken.

Means and Std Deviations Level Number Mean Std Dev 10 531.500 83.3350 10 611.500 88.2563 t Test -1 Assuming unequal variances Difference Std Err Dif Upper CL Dif Lower CL Dif Confidence 80.00 t Ratio 38.38 DF 2.084161 17.94107 0.0517 0.0259 0.9741 160.66 Prob> -0.66 Prob > t 0.95 Prob

Explanation / Answer

Question 1

Answer:

b) We are 95% confident that the average increase in rent is between about $0 and $160.

Explanation:

For the given scenario, the difference between rent for one and two bedroom apartment is given as $80. This is an average difference and we can’t say that about 95% of the time the rent increased by $80. The confidence interval for the difference is given as (-0.66, 160.66). We consider only positive difference, that is, we are 95% confident that the average increase in rent is between about $0 and $160 approximately.

Question 2

Answer:

Correct Answer is C)

H0: µ1 = µ2; Ha: µ1 < µ2

Explanation:

We use hypothesis tests for testing the hypothesis made about population parameters.

First two hypotheses include X1bar and X2bar. These are sample statistics and not population parameters. Options C and D explains population parameters. Null hypothesis never has ‘<’ or ‘>’ sign. It always has ‘=’, ‘’, or ‘’ sign. So, option C is the correct option.

Question 3

Answer:

d) The standard errors measure how much the average rent for each class could vary if new samples of size 10 were taken.

Explanation:

Given design is not a matched pair because separate apartments were used for given two samples. A 95% confidence interval for one bedroom rent is given as $471.89 and $591.11. Equal standard deviations of two samples do not imply the same mean. Means would be different. We know that the standard errors measures how much the average vary for the given samples of a specific size.

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.