Question

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 48 warehouses that are for sale across the United States and finds that the mean price per square foot is $30.66, with a standard deviation of $1.23. 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.)

Answer 1

Solution :

= 31.28

=30.66

S =1.23

n = 48

This is the two tailed test .

The null and alternative hypothesis is ,

H0 :    = 31.28

Ha :     31.28

Test statistic = t

= ( - ) / S / n

= (30.66 -31.28) / 1.23 / 48

= -3.492

Test statistic = t = -3.492

P-value =0.0010

= 0.05  

P-value <

0.0010< 0.05

Reject the null hypothesis .

There is sufficient evidence to suggest that