Question

In: Statistics and Probability

I wish to show that the average apartment rent in Atlanta is over $1200 per month....

I wish to show that the average apartment rent in Atlanta is over $1200 per month. I took a simple random sample of 81 and found the sample mean was $1250 with a standard deviation of $36. Let alpha=.01
Critical value = _____

1)

 1.28

2)

 12.5

3)

 1.65

4)

 2.33

Solutions

Expert Solution

The claim is that the average apartment rent in Atlanta is over $1200 per month.

Therefore, the null and alternative hypotheses are,

H0 : μ = $1200

Ha : μ > $1200

This hypothesis test is a right-tailed test.

sample size (n) = 81

Since, sample size is large we used standard normal z-test.

At significance level of alpha = 0.01, upper tail critical value is, Zc = 2.33

=> Critical value = 2.33

Answer : 4) 2.33

In z-table, we find the z-score corresponding area of 1-0.01 = 0.99 which is z = 2.33

orchestra answered 2 years ago
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