1) Suppose you are a 20 year old student and you have convinced your parents to let you live off campus. Remarkably, they have agreed to pay for your housing. Suppose your parents claim that one-bedroom apartments cost an average of $600 per month. You disagree, and think one-bedroom apartments are more expensive than that. Suppose you went to the local paper and found 40 one-bedroom apartments listed. You calculate a sample mean of = $600 with a standard deviation of o = $50. You and your parents have agreed on the a =.05level. %3D %3D d) Based on your answers to the previous parts of this problem, do you reject the null hypothesis or fail to reject the null hypothesis? e) What do you and your parents conclude?

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1) Suppose you are a 20 year old student and you have convinced your parents to let
you live off campus. Remarkably, they have agreed to pay for your housing.
Suppose your parents claim that one-bedroom apartments cost an average of $600
per month. You disagree, and think one-bedroom apartments are more expensive
than that. Suppose you went to the local paper and found 40 one-bedroom
apartments listed. You calculate a sample mean of = $600 with a standard
deviation of o = $50. You and your parents have agreed on the a =.05level.
d)
Based on your answers to the previous parts of this problem, do you
reject the null hypothesis or fail to reject the null hypothesis?
e)
What do you and your parents conclude?
Transcribed Image Text:1) Suppose you are a 20 year old student and you have convinced your parents to let you live off campus. Remarkably, they have agreed to pay for your housing. Suppose your parents claim that one-bedroom apartments cost an average of $600 per month. You disagree, and think one-bedroom apartments are more expensive than that. Suppose you went to the local paper and found 40 one-bedroom apartments listed. You calculate a sample mean of = $600 with a standard deviation of o = $50. You and your parents have agreed on the a =.05level. d) Based on your answers to the previous parts of this problem, do you reject the null hypothesis or fail to reject the null hypothesis? e) What do you and your parents conclude?
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