Question

QUESTION 18 18. Areport states the average rent for office space in a urban area is $17.75 per square foot Areal estate agent claims this average is incorrect. The agent selected a sample of 20 rental properties and found their mean to be $19.10 per square foot, with a sample standard deviation of $3.55 per square foot. Test the claim at alpha 0.05. Use the P-value method to evaluate compare with the given alpha (0.10). For question 18, give your calculated value for "t", rounding to the hundredths place. For question 19 multiple choicel choose between what two areas your calculated value (when converted to P value) fails. For question w20, answer True or False with regard to rejecting the null hypothesis. Hint: this is a two-tailed test

Answer 1

Below are the null and alternative Hypothesis,
Null Hypothesis, H0: μ = 17.75
Alternative Hypothesis, Ha: μ ≠ 17.75

Test statistic,
t = (xbar - mu)/(s/sqrt(n))
t = (19.1 - 17.75)/(3.55/sqrt(20))
t = 1.701

P-value Approach
P-value = 0.1053

As P-value >= 0.05, fail to reject null hypothesis.
False