1) Suppose you are a 20 year old student and you have convinced your parents to let you live off campus. Remarkably, they have agreed to pay for your housing. Suppose your parents claim that...

D,e

Extracted text: 1) Suppose you are a 20 year old student and you have convinced your parents to let you live off campus. Remarkably, they have agreed to pay for your housing. Suppose your parents claim that one-bedroom apartments cost an average of $600 per month. You disagree, and think one-bedroom apartments are more expensive than that. Suppose you went to the local paper and found 40 one-bedroom apartments listed. You calculate a sample mean of = $600 with a standard deviation of o = $50. You and your parents have agreed on the a =.05level. a) State the null and alternative hypotheses. b) What is the critical value? Sketch a density curve and identify the critical region. c) Calculate the z value corresponding to the test statistic and show its location on the sketch of part (b). Based on your answers to the previous parts of this problem, do you d) reject the null hypothesis or fail to reject the null hypothesis? e) What do you and your parents conclude?