Question

Suppose that in past years the average price per square foot for warehouses in the United States has been $32.26. A national real estate investor wants to determine whether that figure has changed now. The investor hires a researcher who randomly samples 49 warehouses that are for sale across the United States and finds that the mean price per square foot is $31.66, with a standard deviation of $1.27. 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? (Round your answer to 2 decimal places.)

The value of the test statistic is

Answer 1

Solution :

= 32.26

=31.66

S =1.27

n = 49

This is the two tailed test .

The null and alternative hypothesis is ,

H0 :    = 32.26

Ha :     32.26

Test statistic = t

= ( - ) / S / n

= (31.66 - 32.26) /1.27 / 49

= −3.307

Test statistic = t =  −3.31

P-value =

= 0.05  

P-value <

0.0018 < 0.05

Reject the null hypothesis .

There is sufficient evidence to suggest that