A random sample of 15 monthly rents for two-bedroom apartments was selected from a certain city. The mean of this sample is $636. Assume the population standard deviation is $121. A group of students think the mean rent for two-bedroom apartments is less than $650. Test their claim with a significance level of α = 0.05. Use this scenario to answer questions 1-5. 1) State the alternative and null hypothesis.
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Step 1
The null hypothesis is that the mean rent for two-bedroom apartments is equal to $650. The alternative hypothesis is that the mean rent for two-bedroom apartments is less than $650. So, we have: H₀: μ = 650 H₁: μ < 650 Now, we can perform a one-sample t-test Show more…
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