Question 3

Apartment renting is one of the most affected business due to Covid Pandemic. It shows a reasonable reduction in both the demand as well the weekly rent. To determine the mean apartment rent in Melbourne CBD, a sample of 49, two-bedroom apartments were selected. It was determined that the average weekly rent in the sample was $280. The population standard deviation is known to be $40. Use a 5% level of significance to determine whether the average weekly rent is significantly different from $295. Answer the following questions using six steps process of hypothesis testing.