Question

Consider the 2016 rental listings for Manhattan in New York City for non-doorman one bedroom apartments. Suppose that the mean monthly rental for 2016 is $3,500. Suppose that you are interested in whether rental rates for this type of apartment are changing. Your null hypothesis is H₀: μ = $3,500 per month versus H_A: μ ≠ $3,500 per month.

You conduct an SRS of size 40 ads in February for this type of apartment in Manhattan. Your sample statistics:

• x_mean = $3,575
• s = $727

What is the P-value for the hypothesis test (to four decimal places of accuracy)?

Group of answer choices

0.2590

0.5179

0.1078

0.3763

0.4211

Answer 1

Solution :

This is the two tailed test .

The null and alternative hypothesis is ,

H₀ :   = 3500

H_a : 3500

Test statistic = t

= ( - ) / s / n

= (3575 - 3500) / 727 / 40 = 0.652

Test statistic = t = 0.652

n = 40

df = n - 1 = 40 - 1 = 39

using t table

P-value = 0.5179