Cushman and Wakefield accounting that the average annual rent for office space in Tampa was $17.63 per square foot. A real estate agent selected a random sample of 15 rental properties (offices) and found that mean rent was $18.72 per square foot and s= $3.64. At a= 0.05, test the claim that agents the mean rent is greater than $17.63.

Question

Cushman and Wakefield accounting that the average annual rent for office space in Tampa was $17.63 per square foot.  A real estate agent selected a random sample of 15 rental properties (offices) and found that mean rent was $18.72 per square foot and s= $3.64. At a= 0.05, test the claim that agents the mean rent is greater than $17.63.

PsyDAG · Answer

Z = (mean1 - mean2)/standard error (SE) of difference between means

SEdiff = √(SEmean1^2 + SEmean2^2)

SEm = SD/√n

If only one SD is provided, you can use just that to determine SEdiff.

Find table in the back of your statistics text labeled something like "areas under normal distribution" to find the proportion/probability related to the Z score.