Question

We suspect the overall mean monthly rent of apartments in Shadyside is higher than in Oakland, so we survey a random sample of Oakland apartments, and a random sample of Shadyside apartments.

(a): Select the most appropriate statistical test:
(i) test for one proportion.
(ii) test for two independent proportions.
(iii) z test for one mean.
(iv) t test for one mean.
(v) matched pair.
(vi) test for two independent means.
(vii) chi-square.
(viii) ANOVA.
(ix) Inference for regression.(b): Write the appropriate hypotheses, using the appropriate parameter symbol(s) as necessary, and briefly say what the parameter symbol(s) refer to, in the context of the scenario

Answer 1

Explanation:

In the given scenario, there are two independent samples. We want to compare the overall mean monthly rent of apartments in Shadyside with that of Oakland. Therefore,

a) the most appropriate statistical test is

(vi) test for two independent means.

b) the null hypothesis would state that:

the overall mean monthly rent of apartments in Shadyside is same as in Oakland.

H0 : #s = #o

#s - #o = 0

The alternative hypothesis would state that

the overall mean monthly rent of apartments in Shadyside is higher than in Oakland.

H1 : #s > #o

#s - #o > 0

Where

#s represents the overall mean monthly rent of apartments in Shadyside

#o represents the overall mean monthly rent of apartments in Oakland