**(Round all intermediate calculations to at least 4 decimal places.)**

An entrepreneur owns some land that he wishes to develop. He identifies two development options: build condominiums or build apartment buildings. Accordingly, he reviews public records and derives the following summary measures concerning annual profitability based on a random sample of 32 for each such local business venture. For the analysis, he uses a historical (population) standard deviation of $22,800 for condominiums and $19,800 for apartment buildings. Use __Table 1__.

Sample 1 represents condominiums and Sample 2 represents apartment buildings.

Condominiums = – $243,500 n1-32

Apartment Buildings = $235,200 n2 = 32

**a.**Set up the hypotheses to test whether the mean profitability differs between condominiums and apartment buildings.

option 1.) H0: μ1 − μ2 = 0; HA: μ1 − μ2 ≠ 0

option 2.) H0: μ1 − μ2 ≥ 0; HA: μ1 − μ2 < 0

option 3) H0: μ1 − μ2 ≤ 0; HA: μ1 − μ2 > 0

**b.**Compute the value of the test statistic and the corresponding p-value. **(Round “test statistic” value to 2 decimal places and “p-value” to 3 decimal places.)**

(solve) Test statistic ______

(solve) p-value ________

**c-1.**At the 5% significance level, what is the conclusion to the test?

**Choose: (Do not reject or Reject) ** H0.At either the 5% significance levels, we **(Can or Cannot)** conclude the mean profitability differs between condominiums and apartment buildings.

**c-2.**At the 10% significance level, what is the conclusion to the test?

**Choose: (Do not reject or Reject) **H0.At either the 10% significance levels, **(Can or Cannot) **conclude the mean profitability differs between condominiums and apartment buildings.

Answer all parts.