A small town claims that it needs rezoning to accommodate its current growth. The town wants to re-designate a current residential area as commercial. To gain approval from the zoning commission, it must show that the commercial taxes paid in this area are significantly higher, on average, than those paid in other residentially zoned areas. A random sample of 16 dwellings in standard residential areas (sample 1) yields an average commercial tax of $25,000 with a standard deviation of $11,000. A sample of 15 dwellings in the “rezoned” area (sample 2) has an average commercial tax of $55,800 with a standard deviation of $2500. Does it appear that the town should rezone this area? Assume that the populations in question are both normal and have unequal variance. Select the appropriate critical value (CV), test statistic (TS), decision, and conclusion. (Useα= 0.05).
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CV = 1.7459; TS = –10.58; fail to rejectH0; Conclusion: The town should not rezone the area.
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CV = –1.7459; TS = –10.90; rejectH0;;Conclusion: The town should rezone the area.
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CV = –1.6991; TS = –10.58; rejectH0; Conclusion: The town should not rezone the area.
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CV = –1.6991; TS = –10.90; fail to rejectH0; Conclusion: The town should rezone the area.
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