A real estate agent Parul Jaiswal was asked to analyze the one-bedroom condo prices in the GTA. She took a random sample of 12 condos in Downtown Toronto and another random sample of 9 condos in Fashion District. The sample means (in $ thousands) are ] = 747 for Downtown Toronto and T2 = 676 for Fashion District. Historically, the population standard deviations (in $ thousands) are of = 99 for Downtown Toronto and 02 = 62 for Fashion District. Could Parul Jaiswal claim at a 1% level of significance that the average price in Downtown Toronto is higher than the average price in Fashion District? Use the z- test for independent samples and the formula, ($1 - 2) - (41 - 12) Zat = + Note: The nature of the distributions and availability of of and 02 allow us to use z- approach, though both samples are comparatively small. (a) State the null and alternative hypotheses, and identify which one is the claim. Ho: Select an answer v ? v H1: Select an answer v ? v Which one is the claim? OHo OH1(b) Find the critical value(s). In the first box please indicate the sign(s), and in the second box enter the numeric value. In part (b) your answer should contain 2 decimal places. Critical Value(s) = ?v (c) What is the test statistic? For part (c), use the correct sign for the test statistic and round your answer to 3 decimal places. Est (d) Does the test statistic fall into rejection region? ? v (e) What is the short version of your conclusion (in terms of Ho and H1)? O Reject Ho and fail to support H1 (claim) O Fail to support Ho and reject H1 (claim) O Reject Ho and support H1 (claim) O Fail to reject Ho and fail to support H1 (claim) O Support Ho (claim) and support H1{f1 Select the correct statement. O | proved that the average price in Downtown Toronto is lower than the average price in Fashion District. O I have an evidence that the average price in Downtown Toronto is the same or lower than the average price in Fashion District. D At a 1% level of significance, the sample data support the claim that the average price in Downtown Toronto is higher than the average price in Fashion District. D At a 1% level of significance, there is not sufficient sample evidence to support the claim that the average price in Downtown Toronto is higher than the average price in Fashion District
