A real estate agent surmises that the median rent for a one-bedroom apartment in a beach community in southern California is at least $1700 per month. The rents for a random sample of 15 one-bedroom apartments
Are listed below. Find the test statistic x to test the agentʹs claim. $$\begin{array} { l l l l l }
\$ 2000 & \$ 1950 & \$ 1400 & \$ 1575 & \$ 1435 \
\$ 2450 & \$ 1875 & \$ 1370 & \$ 2090 & \$ 2700 \
\$ 1695 & \$ 1700 & \$ 1775 & \$ 1700 & \$ 1480
\end{array}$$
A)6
B)7
C)13
D)1

Question

A real estate agent surmises that the median rent for a one-bedroom apartment in a beach community in southern California is at least $1700 per month. The rents for a random sample of 15 one-bedroom apartments
Are listed below. Find the test statistic x to test the agentʹs claim. $$\begin{array} { l l l l l } 
\$ 2000 & \$ 1950 & \$ 1400 & \$ 1575 & \$ 1435 \
\$ 2450 & \$ 1875 & \$ 1370 & \$ 2090 & \$ 2700 \
\$ 1695 & \$ 1700 & \$ 1775 & \$ 1700 & \$ 1480
\end{array}$$
A)6
B)7
C)13
D)1

Quizplus · Accepted Answer

The sample median is $1700. The null hypothesis is that the median rent is at least $1700, so the alternative hypothesis is that the median rent is less than $1700. The test statistic is the z-score of the sample median, which is (1700 - 1700) / (250 / sqrt(15)) = 0. The critical value for a one-tailed test with a significance level of 0.05 is -1.645. Since the test statistic is greater than the critical value, we fail to reject the null hypothesis and conclude that there is not enough evidence to support the agent's claim.

A Real Estate Agent Surmises That the Median Rent for a One-Bedroom