A real estate agent Parul Jaiswal was asked to analyze the one-bedroom condo prices in the GTA. She took a random sample of 11 condos in High Park and another random sample of 18 condos in Liberty Village. The sample means (in $ thousands) are x1=636x1=636 for High Park and x2=592x2=592 for Liberty Village. Historically, the population standard deviations (in $ thousands) are 1=981=98 for High Park and 2=702=70 for Liberty Village. Could Parul Jaiswal claim at a 1% level of significance that the average price in High Park is higher than the average price in Liberty Village? Use the zz-test for independent samples and the formula,

zst=(x1x2)(12)21n1+22n2zst=(x1-x2)-(1-2)12n1+22n2

Note: The nature of the distributions and availability of 11 and 22 allow us to use zz- approach, though both samples are comparatively small.

(a) State the null and alternative hypotheses, and identify which one is the claim.