Average rent for a two-bedroom apartment


Bob looks in the classified ads for rents on one-bedroom and two-bedroom apartments. He writes down the figures for 10 apartments of each type. He then summarizes the two distributions as follows:

One bedroom: X-bar=531 and s=82.8

Two bedroom: X-bar=609 and s=89.3

Perform a hypothesis test that the average rent for a two-bedroom apartment is greater than for a one-bedroom apartment. Use alpha=0.10. State your null and alternative hypotheses, calculate the test statistic, find the p-value and state your conclusion.

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Basic Statistics: Average rent for a two-bedroom apartment
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