Advanced Hypothesis Testing
This report is a continuation from the previous week statistical report and entails more detailed information concerning the mean costs of the average rent price for office spaces in and around the Sacramento area. A business plan is being designed to include financial coverage and location. This report¡¦s primary focus is to base the cost of office space strictly upon price, to ascertain the startup and ongoing costs of the short-term business plan. However, certainly we will consider other issues with the overall plan once the median is found. Other issues to be considered aside from costs are location, convenience, fixtures, insurance prices, and customer accommodations. Surrounding areas of Sacramento will allow access to more build sites, but the downside is possible poor location for city dwellers. Last week in Adam¡¦s quest of moving his home based business into an office setting, he compared the mean price from the local on-line real estate listings to the price information from his sample of 20 office rooms. Through a t-test statistical analysis, Adam could not conclude that the mean price for the office space in Sacramento is more than $680. However, before Adam makes the final decision, he decides to do a little more investigation based upon a sampling of 20 prices of offices in outlying areas of Sacramento. This week Adam will formulate a hypothesis statement and perform the five-step hypothesis test on the data he collected. After completing his analysis of the 22 prices from outlying areas, and 20 office prices of Sacramento, he will be able to find out if the office prices in surrounding area of Sacramento area is cheaper then the prices of Sacramento.
Prices from Sacramento
Prices from surrounding area of Sacramento
Step 1: State the null...
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