Question 7.5

For Exercises 7.1 and 7.2, see page 360; for 7.3 and 7.4, see page 362; for 7.5 to 7.7, see page 365; for 7.8 and 7.9, see page 368; for 7.10 and 7.11, see page 371; and for 7.12 and 7.13, see page 372.

Question 7.5

7.5 Apartment rents.

Refer to Exercise 7.1 (page 360). Do these data give good reason to believe that the average rent for all advertised one-bedroom apartments is greater than $650 per month? Make sure to state the hypotheses, find the $t$ statistic, degrees of freedom, and $P$ -value, and state your conclusion using the 5% significance level.

7.5

$H_{0} : μ = $ 650. H_{a} : μ > $ 650, t = 2.30, d f = 24, 0.01 < P -value < 0.02$ . There is enough evidence to believe that the average rent for all advertised one-bedroom apartments is greater than $650 per month at the 0.05 significance level.