Question

Suppose that in past years the average price per square foot for warehouses in the United...

Suppose that in past years the average price per square foot for warehouses in the United States has been $31.28. A national real estate investor wants to determine whether that figure has changed now. The investor hires a researcher who randomly samples 50 warehouses that are for sale across the United States and finds that the mean price per square foot is $30.64, with a standard deviation of $1.22. Assume that prices of warehouse footage are normally distributed in population. If the researcher uses a 5% level of significance, what statistical conclusion can be reached?

Homework Answers

Answer #1

Solution :

The null and alternative hypothesis is ,

H0 :   = 31.28

Ha : 31.28

Test statistic (t) =

= ( - ) / s / n

= (30.64 - 31.28) / 1.22 / 50

Test statistic = -3.71

P-value = 0.0005

= 0.05

P-value <

Reject the null hypothesis .

There is sufficient evidence to support the claim.

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