15.07.2022 - 13:28

# Suppose in past years, the average price per square foot for warehouses in the United States has been $32.28. A national real estate investor wants to determine whether that figure has changed now. The investor hires a researcher who randomly samples 19 w Question: Suppose in past years, the average price per square foot for warehouses in the United States has been$32.28. A national real estate investor wants to determine whether that figure has changed now. The investor hires a researcher who randomly samples 19 warehouses that are for sale across the United States and finds that the mean price per square foot is $31.67 with a standard deviation of$1.29. The researcher uses a 5% level of significance.

a. What are the appropriate hypotheses?

b. What is the value of the test statistic?

c. What is (are) the critical value(s)?

d. What statement should be made about the null and alternative hypotheses based on sample data and significance level?

e. What specific conclusion can be drawn about the price per square foot of warehouses in the United States?

• a. The appropriate hypotheses are: Null hypothesis (H0): The average price per square foot for warehouses in the United States is still $32.28. Alternative hypothesis (Ha): The average price per square foot for warehouses in the United States has changed from$32.28. b. The value of the test statistic is -1.63. c. The critical value for a two-tailed test with a 5% level of significance and 18 degrees of freedom is ±2.101. d. Based on the sample data and significance level, we cannot reject the null hypothesis. We do not have enough evidence to conclude that the average price per square foot for warehouses in the United States has changed from $32.28. e. The specific conclusion that can be drawn is that there is not enough evidence to support the claim that the average price per square foot for warehouses in the United States has changed from$32.28.