Commercial real estate prices and rental rates suffered substantial declines in 2008 and 2009 (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 those in many cities in Europe. Annual lease rates for a sample of 30 commercial properties in Hong Kong showed a mean of $1,114 per square meter with a standard deviation of $230. Annual lease rates for a sample of 40 commercial properties in Paris showed a mean lease rate of $989 per square meter with a standard deviation of $195. Required:
Develop appropriate null and alternative hypotheses to test whether the mean annual lease rate is higher in Hong Kong than in Paris.