SOLUTION: A rental agent claims that the mean monthly rent, , for apartments on the east side of town is less than $750 . A random sample of 16 monthly rents for apartments on the east side
Algebra.Com
Question 525639: A rental agent claims that the mean monthly rent, , for apartments on the east side of town is less than $750 . A random sample of 16 monthly rents for apartments on the east side has a mean of $748 , with a standard deviation of $22. If we assume that the monthly rents for apartments on the east side are normally distributed, is there enough evidence to conclude, at the 0.05 level of significance, that is less than $750 ?
Answer by stanbon(75887) (Show Source): You can put this solution on YOUR website!
A rental agent claims that the mean monthly rent, , for apartments on the east side of town is less than $750.
-------
A random sample of 16 monthly rents for apartments on the east side has a mean of $748 , with a standard deviation of $22.
-------
If we assume that the monthly rents for apartments on the east side are normally distributed, is there enough evidence to conclude, at the 0.05 level of significance, that is less than $750?
----------------------------
Ho: u >= 750
Ha: u < 750 (claim)
-------------
x-bar = 748
Test statistic: t(748) = (748-750)/[22/sqrt(16)] = -0.3636
----
p-value = P(t<-0.3535 when df = 15) = tcdf(-100,-0.3636,15) = 0.3606
----
Since the p-value is greater than 5%, fail to reject Ho at
the 5% level of significance.
==================================
The test results do not support the claim)
==================================
Cheers,
Stan H.
===========
RELATED QUESTIONS
A rental agent claims that the mean monthly rent, , for apartments on the east side of... (answered by stanbon)
ou want to rent an unfurnished one-bedroom apartment in Boston next year. The mean... (answered by math_tutor2020)
A real estate agent is collecting rental rates in a city for a client. The data... (answered by math_tutor2020)
Shakira is the manager of a 200-unit apartment complex. She is exploring how the monthly... (answered by stanbon)
Assume that the SD of monthly rent paid by student in a particular town is $40. A random... (answered by stanbon)
an apartment contains 12 units consisting of one and two bedroom apartments that rent for (answered by rfer)
Please help me solve the follow two problems!!
1/x-a=1/b, find x.
and
An... (answered by CubeyThePenguin)
You want to rent an unfurnished one-bedroom apartment in Boston next year. The mean... (answered by math_tutor2020)
An apartment building contains 12 units consisting of one- and two-bedroom apartments... (answered by rfer)