A rental agent claims that the mean monthly rent, μ, for apartments on the east side of town is less than $650. A random sample of 10 monthly rents for apartments on the east side has a mean of $631, with a standard deviation of $24. 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 μ is less than $650? State the null hypothesis H0 and the alternative hypothesis H1 Using the t-test find the value Find the p-value Using the 0.05 level of significance, can we conclude that the mean monthly rent for apartments on the east side is less than $650? Yes or no?

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A rental agent claims that the mean monthly rent, μ, for apartments on the east side of town is less than $650. A random sample of 10 monthly rents for apartments on the east side has a mean of $631, with a standard deviation of $24. 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 μ is less than $650?

  • State the null hypothesis H0 and the alternative hypothesis H1
  • Using the t-test find the value
  • Find the p-value
  • Using the 0.05 level of significance, can we conclude that the mean monthly rent for apartments on the east side is less than
    $650? Yes or no?
     
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