Hypothesis Testing

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 five-step 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 z distribution to find the p-value. Use a 0.05 alpha level.

Variable	N	Mean	SE Mean
Rent	140	2320	398.52

"SE Mean" is the standard error of the mean.

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Step 1: Check assumptions and write hypotheses.

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Step 2: Calculate the test statistic.

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Step 3: Determine the p-value (use the z distribution).

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Step 4: Make a decision.

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Step 5: State a real-world conclusion.