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During the fourth quarter o f 2009, rents declined in almost all major cities in the United States. The largest fall was in New York, where average rents fell nearly 20% to $44.69 per square foot annually (The Wall Street Journal, January 8, 2010). The following table lists the average rent per square foot for 10 cities during the fourth quarter of 2009.
a. Specify the competing hypotheses in order to determine whether the median rent is greater than $25 per square foot.
b. Calculate the value of the test statistic. Assume the normal approximation for T.
c. Calculate the p-value.
d. At the 1 % significance level, can you conclude that the median rent exceeds $25 per square foot?
Based on a two-tailed 0.05 What do you conclude?
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What is the null hypothesis? Use a = 0.05 .
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