According to SquareFoot.com, the average Class A office space in Fort Worth is $31 per square foot.
Question:
According to SquareFoot.com, the average Class A office space in Fort Worth is $31 per square foot. A large real-estate company wants to confirm this figure. The firm conducts a telephone survey of 95 Class A offices in Fort Worth and asks the office managers how much they pay in rent per square foot. Suppose the sample average is $31.75 per square foot. The population standard deviation is $5.11. a. Conduct a hypothesis test using α = .05 to determine whether the cost per square foot reported by SquareFoot.com should be rejected. b. If the decision in part a is to fail to reject and if the actual average cost per square foot is $32.50, what is the probability of committing a Type II error?
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