Mathematics, 02.04.2020 03:19, markell42
Commercial real estate prices and rental rates suffered substantial declines in the past year (Newsweek, July 27, 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 ? = .01. What is your conclusion?
c. Are rental rates higher in Hong Kong than in Paris?
Answers: 1
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Commercial real estate prices and rental rates suffered substantial declines in the past year (Newsw...
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