At a particular university in an urban area, official policy mandates that unive

Question

At a particular university in an urban area, official policy mandates that university-owned student housing shall rent for no more than 80% of the market rate for comparable housing. Rent for all two-bedroom university-owned student apartments is $660/month. All the university-owned two-bedroom student apartments have one bathroom, no view, and are comparable in construction, size, age, amenities, etc. To determine whether the rent satisfies the rules, an administrator proposes to compile as complete a list as he can of two-bedroom apartments for rent in the area, using sources including newspaper ads, commercial rental listing services, and bulletin boards. Then, he will take a simple random sample of 150 of the apartments in the list, and visit each one to determine whether it is comparable to the university-owned apartments in size, number of bathrooms, state of repair, amenities (such as laundry facilities, bathtub/shower), etc. He will compute the sample mean rent of those apartments he finds to be comparable to the university-owned apartments. Let r denote the mean rent of all comparable two-bedroom apartments in the area, and let R denote the sample mean rent of the comparable two-bedroom apartments the administrator finds. The administrator will approach the problem of determining whether the university is complying with the mandate as an hypothesis test.

The most appropriate alternative hypothesis is $_______?

please help

Explanation / Answer

We want to check if rent is more than 80 % of allowed , hence {one -sided right -tailed hypothesis}

that is 0.8 *660 =  660*0.8

the hypothesis is for parameter ( population )

here it is r ,

note that R is sample mean , that is statistics not parameter

hence

The most appropriate alternative hypothesis is r > 660*0.8   

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

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