Answer to Question #85721 in Statistics and Probability for Bob

Question

We conduct a hypothesis test to determine whether the true mean monthly rent for an apartment differs in Calgary and Edmonton (both follow normal distribution). We take a SRS, and the mean and standard deviation for the Calgary apartments are x1=1400 and s1=300 and Edmonton apartments are x2=1200 and s2=250. The test statistic is F=2.62 and the P-value is 0.1229.

What is the interpretation of the P-value?
A) If the true mean rent amounts for the two cities were =, the probability of incorrectly rejecting the null hypothesis would be 0.1229.
B) The probability the mean rent amounts for the two cities are different is 0.1229.
C) If the true mean rent amounts for the two cities were =, the probability of observing a difference in sample means at least as extreme as $200 would be 0.1229.
D) If the true mean rent amounts for the two cities were not =, the probability of incorrectly failing to reject the null hypothesis would be 0.1229.