A random sample of 17 monthly rents for two-bedroom apartments was selected from

Question

A random sample of 17 monthly rents for two-bedroom apartments was selected from a recent edition of the Gainesville Sun. The 17 values are symmetric, with no outliers. The mean of this sample is $636 with standard deviation $120.

A group of students thinks the mean rent for two-bedroom apartments is less than $650. Test their claim by doing a test of significance.

Fill in the blank with the test value.

a.H0:=

b.What sign should appear in the alternative hypothesis?
A. <<
B. >>
C.

c.Select the appropriate bounds on the PP-value.
A. PP-value > .25
B. .20 < PP-value < .25
C. .15 < PP-value < .20
D. .10 < PP-value < .15
E. .05 < PP-value < .10
F. .025 < PP-value < .05
G. .02 < PP-value < .025
H. .01 < PP-value < .02
I. .005 < PP-value < .01
J. .0025 < PP-value < .005
K. .001 < PP-value < .0025
L. .0005 < PP-value < .001
M. PP-value < .0005

Select the appropriate conclusion for this test at a significance level of =0.01=0.01.
A. Reject H0H0. We have significant evidence that the mean rent for two-bedroom apartments is less than $ 650.
B. Fail to reject H0H0. We do not have significant evidence that the mean rent for two-bedroom apartments is less than $ 650.

Explanation / Answer

a).H0:= 650

Ha: <650

b. option A <

c)

here std error =std deviaiton/(n)1/2 =29.1043

hence test statistic =(X-mean)/std error =(636-650)/29.1043=-0.4810

for above p value =0.3185

A. PP-value > .25

B. Fail to reject H0H0. We do not have significant evidence that the mean rent for two-bedroom apartments is less than $ 650.

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