A real estate research firm monitors the cost of apartment rentals in a large Manitoba city. The mean rental rate for a two bedroom apartment in mid 2008 was $850/month.
A recent random sample of 64 two bedroom apartments showed a mean rental rate of $909.25.
Based on historical data, a population standard deviation of o=$200 may be assumed.
Does the recent sample allow the research firm to conclude that the mean apartment rental now exceed $850/month?
Formulate and test the appropriate hypotheses using the p-value approach. What is the p value for eh test? should the research firm reject the null hypothesis at a=0.025? What conclusion should they make?