Show transcribed image text An entrepreneur owns some land that he wishes to develop. He identifies two development options: build condominiums or build apartment buildings. Accordingly, he reviews public records and derives the following summary measures concerning annual profitability based on a random sample of 30 for each such local business venture. For the analysis, he uses a historical (population) standard deviation of $22,500 for condominiums and $20,000 for apartment buildings. Use Table 1 Sample 1 represents condominiums and Sample 2 represents apartment buildings CondominiumsApartment Buildings X1 = $244.200 n1 = 30 X2 = $235,800 n2 30 a. Set up the hypotheses to test whether the mean profitability differs between condominiums and apartment buildings b. Compute the value of the test statistic and the corresponding p-value. (Round "Test statistic" value to 2 decimal places and "p-value" to 3 decimal places.) Test statistic p-value c-1. At the 5% significance level, what is the conclusion to the test? conclude the Do not reject â–¼ H0. At either the 5% significance levels, we cannot mean profitability differs between condominiums and apartment buildings c-2. At the 10% significance level, what is the conclusion to the test? Do not reject â–¼ H0. At either the 10% significance levels, we cannot mean profitability differs between condominiums and apartment buildings conclude the
An entrepreneur owns some land that he wishes to develop. He identifies two development options: build condominiums or build apartment buildings. Accordingly, he reviews public records and derives the following summary measures concerning annual profitability based on a random sample of 30 for each such local business venture. For the analysis, he uses a historical (population) standard deviation of $22,500 for condominiums and $20,000 for apartment buildings. Use Table 1 Sample 1 represents condominiums and Sample 2 represents apartment buildings CondominiumsApartment Buildings X1 = $244.200 n1 = 30 X2 = $235,800 n2 30 a. Set up the hypotheses to test whether the mean profitability differs between condominiums and apartment buildings b. Compute the value of the test statistic and the corresponding p-value. (Round "Test statistic" value to 2 decimal places and "p-value" to 3 decimal places.) Test statistic p-value c-1. At the 5% significance level, what is the conclusion to the test? conclude the Do not reject â–¼ H0. At either the 5% significance levels, we cannot mean profitability differs between condominiums and apartment buildings c-2. At the 10% significance level, what is the conclusion to the test? Do not reject â–¼ H0. At either the 10% significance levels, we cannot mean profitability differs between condominiums and apartment buildings conclude the
