Answer:
1) we will fail to reject the null hypothesis and conclude that the population mean apartment rental rate does not exceed the level reported in 2002
2) P - value = 0.116435
Step-by-step explanation:
We are given;
Population mean; μ = $895
Sample mean; x' = $915
Population standard deviation; σ = $225
Sample standard deviation; s = $227.50
Sample size; n = 180
Let's state the hypothesis;
Null hypothesis;H0: μ ≤ $895
Alternative hypothesis;Ha: μ > $895
Now, the z-score formula is;
z = (x' - μ)/(σ/√n)
Thus, we are making use of the population standard deviation
z = (915 - 895)/(225/√180)
z = 20/16.7705
z = 1.193
From online p-value from z-score calculator attached, with α = 0.10, one tail, we have;
The P-Value is 0.116435
This is more than the significance level of 0.1, thus we will fail to reject the null hypothesis and conclude that the population mean apartment rental rate does not exceed the level reported in 2002
