# Question

A housing official in a certain city claims that the mean monthly rent for apartments in the city is more than $1000. To verify this claim, a simple random sample of 40 renters in the city was taken, and the sample mean rent paid was $1100 with a sample standard deviation of $300. Can you conclude that the mean monthly rent in the city is greater than $1000?

a. State the null and alternate hypotheses.

b. Should we perform a z-test or a t-test? Explain.

c. Compute the value of the test statistic.

d. Do you reject Ho? Use the a = 0.05 level.

e. State a conclusion.

a. State the null and alternate hypotheses.

b. Should we perform a z-test or a t-test? Explain.

c. Compute the value of the test statistic.

d. Do you reject Ho? Use the a = 0.05 level.

e. State a conclusion.

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