Question
A municipal council issues a recommendation that residents should have at least 11 square meters of living space per person. You decide to conduct a
A municipal council issues a recommendation that residents should have at least 11 square meters of living space per person. You decide to conduct a study to examine whether this is currently the case. The results of your survey of 170 residents (based on simple random sampling) show that, on average, residents have 10 square meters of living space with a standard deviation of 6.5.
Do the data provide convincing evidence that, on average, residents have less living space than recommended by the municipality (11 m2)? Conduct hypothesis testing (one-tailed) with significance levels of a) 1% and then b) 10%. Include the full calculation in your answer and then interpret the results.
Question 2: Building on question 1, for a random sample of 170 residents with the sample mean of 10 m2/resident and SD=6.5, estimate the true average number of square meters per resident in the municipality using a) 80% confidence interval and then b) 99% confidence interval. Include the full calculation in your answer and then interpret the results.
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