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Test of hypothesis

Reis, Inc., a New York real estate research firm, tracks the cost of apartment rentals in the United States. In mid-2002, the nationwide mean apartment rental rate was $895 per month (The Wall Street Journal, July 8, 2002). Assume that, based on the historical quarterly surveys, a population standard deviation of s = $225 is reasonable. In a current study of apartment rental rates, a sample of 180 apartments nationwide provided a sample mean of $915 per month. Do the sample data enable Reis to conclude that the population mean apartment rental rate now exceeds the level reported in 2002?

a. State the null and alternative hypotheses.
b. Determine the p-value
c. At a (alpha) = .01, explain your conclusion.
d. Provide a recommendation for Reis to consider at this time.

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Reis, Inc., a New York real estate research firm, tracks the cost of apartment rentals in the United States. In mid-2002, the nationwide mean apartment rental rate was $895 per month (The Wall Street Journal, July 8, 2002). Assume that, based on the historical quarterly surveys, a population standard deviation of s = $225 is reasonable. In a current study of apartment rental rates, a sample of 180 apartments ...

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The solution tests the hypothesis that the population mean apartment rental rate now exceeds the level reported in 2002.

$2.19