Question

A rental agent claims that the mean monthly rent, H, for apartments on the east side of town is less than $675. A random sample of 16 monthly rents for apartments on the east side has a mean of $673, with a standard deviation of $19. 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 u is less than $675? Perform a one-tailed test. Then fill in the table below. Carry your intermediate computations to at least three decimal places and round your answers as specified in the table. . a р 0 The null hypothesis: P x S <a . The alternative hypothesis: 8 O=D OSO OD The type of test statistic: (Choose one) DO <O > The value of the test statistic: (Round to at least three decimal places.) X 5 ? The p-value: (Round to at least three decimal places.) Using the 0.05 level of significance, can we conclude that the mean monthly rent for apartments on the east side is less than $675? Yes No

Answer 1

Below are the null and alternative Hypothesis,
Null Hypothesis, H0: μ = 675
Alternative Hypothesis, Ha: μ < 675

The type of test statistic is single mean t test

Test statistic,
t = (xbar - mu)/(s/sqrt(n))
t = (673 - 675)/(19/sqrt(16))
t = -0.421

P-value Approach
P-value = 0.340

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

No, we cannot conclude that the claim