document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=525639>Question 525639</A>: <I><SPAN STYLE=\"word-break: break-all;\"> 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 ? </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #348163 by </B><A HREF=/tutors/aboutme.mpl?userid=stanbon><B>stanbon(75887)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=stanbon><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/images/nopicture.jpg><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=348163\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> A rental agent claims that the mean monthly rent, , for apartments on the east side of town is less than $750.<BR>\n" );
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document.write( "A random sample of 16 monthly rents for apartments on the east side has a mean of $748 , with a standard deviation of $22.<BR>\n" );
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document.write( "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?<BR>\n" );
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document.write( "Ho: u >= 750<BR>\n" );
document.write( "Ha: u < 750 (claim)<BR>\n" );
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document.write( "x-bar = 748<BR>\n" );
document.write( "Test statistic: t(748) = (748-750)/[22/sqrt(16)] = -0.3636<BR>\n" );
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document.write( "p-value = P(t<-0.3535 when df = 15) = tcdf(-100,-0.3636,15) = 0.3606<BR>\n" );
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document.write( "Since the p-value is greater than 5%, fail to reject Ho at<BR>\n" );
document.write( "the 5% level of significance.<BR>\n" );
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document.write( "The test results do not support the claim)<BR>\n" );
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document.write( "Cheers,<BR>\n" );
document.write( "Stan H.<BR>\n" );
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