An entrepreneur owns some land that he wishes to develop. He identifies two development options: build condominiums or build apartment buildings. Accordingly, he reviews public records and derives the following summary measures concerning annual profitability based on a random sample of 34 for each such local business venture. For the analysis, he uses a historical (population) standard deviation of $21,900 for condominiums and $19,600 for apartment buildings. (You may find it useful to reference the appropriate table: z table or ttable) Sample 1 represents condominiums and Sample 2 represents apartment buildings. Condominiums I = $252,000 ni = 34 Apartment Buildings I2 = $235,600 n2 = 34 a. Set up the hypotheses to test whether the mean profitability differs between condominiums and apartment buildings. Ho: 41- 42 = 0; HA H1- 42 * 0 O Ho: 41- 42 20; HA -42<0 O Ho: 41- 42 S 0; HA 1- H2>0 b. Calculate the value of the test statistic. (Round final answer to 3 decimal places.) O Answer is complete but not entirely correct. Test statistic 0.0080 X

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An entrepreneur owns some land that he wishes to develop. He identifies two development options: build condominiums or build
apartment buildings. Accordingly, he reviews public records and derives the following summary measures concerning annual
profitability based on a random sample of 34 for each such local business venture. For the analysis, he uses a historical (population)
standard deviation of $21,90O for condominiums and $19,600 for apartment buildings. (You may find it useful to reference the
appropriate table: z table or ttable)
Sample 1 represents condominiums and Sample 2 represents apartment buildings.
Apartment
Buildings
2 = $235,600
Condominiums
I = $252,000
ni = 34
n2 = 34
a. Set up the hypotheses to test whether the mean profitability differs between condominiums and apartment buildings.
Ho: 41- 42 = 0; HA: H1- 42 #00
O Ho: H1- 42 2 0; HA: 1- 42 <0
O Ho: 41- H2 s0; HA H1- 42>0
b. Calculate the value of the test statistic. (Round final answer to 3 decimal places.)
Answer is complete but not entirely correct.
Test statistic
0.0080
Transcribed Image Text:An entrepreneur owns some land that he wishes to develop. He identifies two development options: build condominiums or build apartment buildings. Accordingly, he reviews public records and derives the following summary measures concerning annual profitability based on a random sample of 34 for each such local business venture. For the analysis, he uses a historical (population) standard deviation of $21,90O for condominiums and $19,600 for apartment buildings. (You may find it useful to reference the appropriate table: z table or ttable) Sample 1 represents condominiums and Sample 2 represents apartment buildings. Apartment Buildings 2 = $235,600 Condominiums I = $252,000 ni = 34 n2 = 34 a. Set up the hypotheses to test whether the mean profitability differs between condominiums and apartment buildings. Ho: 41- 42 = 0; HA: H1- 42 #00 O Ho: H1- 42 2 0; HA: 1- 42 <0 O Ho: 41- H2 s0; HA H1- 42>0 b. Calculate the value of the test statistic. (Round final answer to 3 decimal places.) Answer is complete but not entirely correct. Test statistic 0.0080
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