Cost of apartment rentals


A real estate research firm monitors the cost of apartment rentals in a large Newfoundland city. The mean rental rate for a two bedroom apartment in 2006 was 850 per month. A recent random sample of 64 two bedroom apartments showed a mean rental rate of $909.25 per month. Based on historical data a population standard deviation of $200 may be assumed. Does the recent sample allow the research firm to conclude that the mean apartment rental now exceeds 850 per month?formulate and test the appropriate hypothesis using the P value approach. What is the P value for the test? Should the research firm reject the null hypothesis at 0.025? what conclusion should they make?

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Basic Statistics: Cost of apartment rentals
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