18. A report states the average rent for office space in a urban area is $17.75 per square foot. A real estate agent claims this average is incorrect. The agent selected a sample of 22 rental properties and found their mean to be $19.25 per square foot, with a sample standard deviation of $3.45 per square foot. Test the claim at alpha = 0.05. Use the P-value method to evaluate/compare with the given alpha (0.05). For question #18, give your calculated value for "t", rounding to the hundredths place. For question #19 (multiple choice), choose between what two areas your calculated t-value (when converted to P-value) falls. For question #20, answer True or False with regard to rejecting the null hypothesis. Hint: this is a two-tailed test!!
Continuous Probability Distributions
Probability distributions are of two types, which are continuous probability distributions and discrete probability distributions. A continuous probability distribution contains an infinite number of values. For example, if time is infinite: you could count from 0 to a trillion seconds, billion seconds, so on indefinitely. A discrete probability distribution consists of only a countable set of possible values.
Normal Distribution
Suppose we had to design a bathroom weighing scale, how would we decide what should be the range of the weighing machine? Would we take the highest recorded human weight in history and use that as the upper limit for our weighing scale? This may not be a great idea as the sensitivity of the scale would get reduced if the range is too large. At the same time, if we keep the upper limit too low, it may not be usable for a large percentage of the population!
18. A report states the average rent for office space in a urban area is $17.75 per square foot. A real estate agent claims this average is incorrect. The agent selected a sample of 22 rental properties and found their mean to be $19.25 per square foot, with a sample standard deviation of $3.45 per square foot. Test the claim at alpha = 0.05. Use the P-value method to evaluate/compare with the given alpha (0.05).
For question #18, give your calculated value for "t", rounding to the hundredths place.
For question #19 (multiple choice), choose between what two areas your calculated t-value (when converted to P-value) falls.
For question #20, answer True or False with regard to rejecting the null hypothesis. Hint: this is a two-tailed test!!
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