The average monthly rent for a one-bedroom home in San Francisco is $1229. A random sample of 15 one-bedroom homes about 15 miles outside of San Francisco had a mean rent of $1350. The population standard deviation is $250. At α = 0.05, can we conclude that the monthly rent outside San Francisco differs from that in the city?
Perform each of the following steps.
a. State the hypotheses and identify the claim.
b. Find the critical value(s).
c. Compute the test value.
d. Make the decision.
e. Summarize the results.
Use the traditional method of hypothesis testing unless otherwise specified.