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An entrepreneur owns some land that he wishes to develop. He identifies two development options: build condominiums or build apartment buildings. Accordingly, he reviews public records and derives the following summary measures concerning annual profitability based on a random sample of 30 for each such local business venture. For the analysis, he uses a historical (population) standard deviation of $22,800 for condominiums and $19,500 for apartment buildings. (You may find it useful to reference the appropriate table: z table or t table) Sample 1 represents condominiums and Sample 2 represents apartment buildings. Apartment Buildings X2= $235,500 n2 = 30 Condominiums X1 = $250,500 n1 = 30 a. Set up the hypotheses to test whether the mean profitability differs between condominiums and apartment buildings. Ho: M1 M2 = 0; HA: M₁ M₂ #0♥ Ho: M1-M220;HA: M1-M₂ <0 Ho: M1-M2 ≤0; HA: M1 - H₂> 0 b. Calculate the value of the test statistic. (Round final answer to 3 decimal places.) Test statistic

An entrepreneur owns some land that he wishes to develop. He identifies two development options: build condominiums or build apartment buildings. Accordingly, he reviews public records and derives the following summary measures concerning annual profitability based on a random sample of 30 for each such local business venture. For the analysis, he uses a historical (population) standard deviation of $22,800 for condominiums and $19,500 for apartment buildings. (You may find it useful to reference the appropriate table: z table or t table) Sample 1 represents condominiums and Sample 2 represents apartment buildings. Apartment Buildings X2= $235,500 n2 = 30 Condominiums X1 = $250,500 n1 = 30 a. Set up the hypotheses to test whether the mean profitability differs between condominiums and apartment buildings. Ho: M1 M2 = 0; HA: M₁ M₂ #0♥ Ho: M1-M220;HA: M1-M₂ <0 Ho: M1-M2 ≤0; HA: M1 - H₂> 0 b. Calculate the value of the test statistic. (Round final answer to 3 decimal places.) Test statistic

Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
18th Edition
ISBN:9780079039897
Author:Carter
Publisher:Carter
Chapter10: Statistics
Section10.4: Distributions Of Data
Problem 19PFA
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An entrepreneur owns some land that he wishes to develop. He identifies two development options: build condominiums or build apartment buildings. Accordingly, he reviews public records and derives the following summary measures concerning annual profitability based on a random sample of 30 for each such local business venture. For the analysis, he uses a historical (population) standard deviation of $22,800 for condominiums and $19,500 for apartment buildings. (You may find it useful to reference the appropriate table: z table or t table) Sample 1 represents condominiums and Sample 2 represents apartment buildings. Condominiums $250,500 Apartment Buildings X2 = $235,500 n2 = 30 X1 n1 = 30 a. Set up the hypotheses to test whether the mean profitability differs between condominiums and apartment buildings. Ho: M₁ M2 = 0; HẠ: µ1 − µ2 ‡0 Ho: M1 M2 ≥ 0; HA: μ1 −μ₂ < 0 Ho: M1 M2 ≤ 0; HA: M₁ M₂ > 0 b. Calculate the value of the test statistic. (Round final answer to 3 decimal places.) Test statistic
Transcribed Image Text:An entrepreneur owns some land that he wishes to develop. He identifies two development options: build condominiums or build apartment buildings. Accordingly, he reviews public records and derives the following summary measures concerning annual profitability based on a random sample of 30 for each such local business venture. For the analysis, he uses a historical (population) standard deviation of $22,800 for condominiums and $19,500 for apartment buildings. (You may find it useful to reference the appropriate table: z table or t table) Sample 1 represents condominiums and Sample 2 represents apartment buildings. Condominiums $250,500 Apartment Buildings X2 = $235,500 n2 = 30 X1 n1 = 30 a. Set up the hypotheses to test whether the mean profitability differs between condominiums and apartment buildings. Ho: M₁ M2 = 0; HẠ: µ1 − µ2 ‡0 Ho: M1 M2 ≥ 0; HA: μ1 −μ₂ < 0 Ho: M1 M2 ≤ 0; HA: M₁ M₂ > 0 b. Calculate the value of the test statistic. (Round final answer to 3 decimal places.) Test statistic
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