Activity 2: Hypothesis Testing In this question set, you are going to conduct a hypothesis test using the approach introduced on page 7.4.1 Ea of the online course notes. Researchers want to know if there is evidence that the mean monthly rental rate of a two bedroom apartment in Philadelphia, Pennsylvania, is different from $2200. Use the fivestep hypothesis testing procedure that is outlined below to conduct a hypothesis test to determine if there is evidence that the population mean is different from $2200. Because the sample size is large, the sampling distribution will be approximately normal and you can use the 2 distribution to find the pvalue. Use a 0.05 alpha level. \\l...3_l.l- LI 2. Calculate the test statistic. Here, we'll be using the formula below for the general form ofthe test statistic. 3. Determine the p-value. The p- value is the area under the standard normal distribution that is more extreme than the test statistic in the direction of the alternative hypothesis. 4. Make a decision. pr g a reject the null hypothesis. pr > a fail to reject the null hypothesis. 5. Statea "real world" conclusion. Based on your decision in step 4, write a conclusion in terms of the original research question. General Form ofa Test Statistic When using a standard normal distribution (i.e., 2 distribution), the test statistic is the standardized value that is the boundary of the p-value. that is the boundary of the p-value. Recall the formula for a z score: 2: = . The formula for a test statistic will be similar. When conducting a hypothesis test the sampling distribution will be centered on the null parameter and the standard deviation is known as the standard error. :35 General Form ofa Test Statistic , , sample statisi test statzstzc = stan This formula puts our observed sample statistic on a standard scale (e.g., 2 distribution). A z score tells us where a score lies on a normal distribution in standard deviation units. The test statistic tells us where our sample statistic falls on the sampling distribution in standard error units. 7.4.1 - Hypothesis Testing Five Step Hypothesis Testing Procedure In the remaining lessons, we will use the following five step hypothesis testing procedure. This is slightly different from the five step procedure that we used when conducting randomization tests. 1. Check assumptions and write hypotheses. The assumptions will vary depending on the test. In this lesson we'll be confirming that the sampling distribution is approximately normal by visually examining the sampling distribution. In later lessons you'll learn more objective assumptions. The null and alternative hypotheses will always be written in terms of population parameters; the null hypothesis will always contain the equality (i.e., =). 2 Calculate the tact statistic HaraResearchers want to know if there is evidence that the mean monthly rental rate of a two- bedroom apartment in Philadelphia, Pennsylvania, is different from $2200. Use the vestep hypothesis testing procedure that is outlined below to conduct a hypothesis test to determine if there is evidence that the population mean is different from $2200. Because the sample size is large, the sampling distribution will be approximately normal and you can use the 2 distribution to nd the p-value. Use a 0.05 alpha level. SE Variable N Mean Mean Rent 140 2320 398.52 \"SE Mean\" is the standard error of the mean