Question

PROBLEM 5 Suppose that in past years the aterage meand price per square foot for warehouses in the United States has been $33. A national real estate investor wants to determine whether that figure has changed now. The investor hires a researcher who randomly samples 25 warehouses that are for sale across the United States and finds that the mealy price per square toot is $34.12, with asample standar eviation of S2.11 Assume that prices of warehouse footage are normally distributed in the population. If the researcher uses a 5level statistical conclusion can be reached? cancelwhat

Answer 1

Answer:

Single sample t test

$H_0: \mu =33 \ \ \ H_1: \mu \neq 33$

Two sided test.

(z-1)

(34.12 33) 2.11

=2.6540                

Table value of t with 24 DF at 0.05 level =2.0639

Rejection Region: Reject Ho if t < -2.0639 or t > 2.0639

Calculated t = 2.6540 falls in the rejection region

The null hypothesis is rejected.

There is enough evidence to support that the figure has changed now.

t Test for Hypothesis of the Mean
Data
Null Hypothesis                m=	33
Level of Significance	0.05
Sample Size	25
Sample Mean	34.12
Sample Standard Deviation	2.11
Intermediate Calculations
Standard Error of the Mean	0.4220
Degrees of Freedom	24
t Test Statistic	2.6540
Two-Tail Test
Lower Critical Value	-2.0639
Upper Critical Value	2.0639
p-Value	0.0139
Reject the null hypothesis