Answer:
The decision is to fail to reject the null hypothesis
This means that the population mean apartment rental rate now does not exceeds the level reported in 2002
Step-by-step explanation:
From the question we are told that
The population mean is [tex]\mu = \$895[/tex]
The population standard deviation is [tex]\sigma = \$225[/tex]
The sample size is [tex]n = 180[/tex]
The sample mean is [tex]\= x = \$ 915[/tex]
The sample standard deviation is [tex]s = \$ 227.50[/tex]
The level of significance is [tex]\alpha = 0.01[/tex]
The null hypothesis is [tex]H_o : \mu \le \$ 895[/tex]
The alternative hypothesis is [tex]H_a : \mu > \$895[/tex]
The test statistics is evaluated as
[tex]t = \frac{\= x- \mu}{\frac{\sigma }{\sqrt{n} } }[/tex]
=> [tex]t = \frac{ 915 - 895}{ \frac{225}{ \sqrt{180} } }[/tex]
=> [tex]t =1.193[/tex]
So from z-table the p-value is obtained, the value is
[tex]p-value = P(Z > t) = P(Z > 1.193 ) = 0.11643[/tex]
So From the value obtained we see that
[tex]p-value > \alpha[/tex] so we fail to reject the null hypothesis
