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

question 45

Essay

A real estate agent believes that the median rent for a one-bedroom apartment in a beach community in southern California is greater than $\$ 1200$ per month. The rents for a random sample of 15 one-bedroom apartments are listed below. Test the agent's claim. Use $\alpha =$ $0.01$ .
$\begin{array} { c c c c c } \$ 1500 & \$ 1450 & \$ 900 & \$ 1075 & \$ 935 \\ \$ 1950 & \$ 1375 & \$ 870 & \$ 1590 & \$ 2200 \\ \$ 1195 & \$ 1200 & \$ 1275 & \$ 1200 & \$ 980 \end{array}$

---

Definitions:

Min

Often short for "minimum," it represents the smallest or least possible amount or degree of a certain quantity or measure.

Numeraire Good

A benchmark or standard commodity against which the relative price of all other goods and services is measured in an economy.

Initial Endowment

The initial set of assets, goods, or resources that individuals or entities possess before entering into any economic transactions or exchanges.

Pareto Optimal Allocation

An economic state where resources are allocated in such a way that it is impossible to make any individual better off without making at least one individual worse off.