#1 Commercial real estate prices and rental rates suffered substantial declines in the past year (Newsweek, July, 2009). These declines were particularly severe in Asia; annual lease rates in Tokyo, Hong Kong, and Singapore declined by 40% or more. Even with such large declines, annual lease rates in Asia were still higher than in many cities in Europe and the United States. Annual lease rates for a sample of 30 commercial properties in Hong Kong showed an average of $1114 per square meter with a standard deviation of $230. Annual lease rates for a sample of 40 commercial properties in Paris showed an average lease rate of $989 per square meter with a standard deviation of $195.
a. On the basis of the sample results, can we conclude that the mean annual lease rate is higher in Hong Kong than in Paris? Develop appropriate null and alternative hypotheses.
b. Use (α= .01). What is our conclusion? Are rental rates higher in Hong Kong than in Paris?
Problem 24. Airline travelers often choose which airport to fly from based on flight cost. Cost data (in dollars) for a sample of flights to eight cities from Dayton Ohio and Louisville Ky. were collected to help determine which of the two airports was more costly to fly from (The Cincinnati Enquirer, February 19, 2006). A researcher argues that it is significantly more costly to fly out of Dayton than Louisville. Use the sample data to see whether they support the researcher’s argument. Use α = .05)as the level of significance.
Destination Dayton Louisville
Chicago-O’Hara $319 $142
Grand Rapid, Michigan 192 213
Portland, Oregon 503 317
Atlanta 256 387
Seattle 339 317
South Bend, Indiana 379 167
Miami 268 273
Dallas-Ft. Worth 288 274
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