... such cases, use the closest table with fewer degrees of freedom. In this case, that means the table with 100 degrees of freedom. The observed t-statistic 2.898 in this example lies between t = 2.626 and t = 3.174 in the first column of Table 16.2, implying that the p-value is between 0.001 and 0.005. In fact, software computes the p-value to be 0.0023.

A table

Table 16.2 Percentiles of the t-distribution (a larger table is inside the back cover).

Because the p-value is less than the chosen level α = 0.01, the firm rejects H0 and concludes that average rents in San Francisco exceed the break-even amount $2,000. ...

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