$$\text { TABLE 10-4 }$$ A Real Estate Company Is Interested in Testing Whether, on Interested

question 86

Multiple Choice

$$\text { TABLE 10-4 }$$ A real estate company is interested in testing whether, on average, families in Gotham have been living in their current homes for less time than families in Metropolis have. Assume that the two population variances are equal. A random sample of 100 families from Gotham and a random sample of 150 families in Metropolis yield the following data on length of residence in current homes.
$$\text { Gotham: } \bar{X} _ { G } = 35 \text { months, } s g ^ { 2 } = 900 \quad \text { Metropolis: } \bar{X} _ { M } = 50 \text { months, } \mathrm { sm } ^ { 2 } = 1050$$
-Referring to Table 10-4, suppose ? = 0.05. Which of the following represents the result of the relevant hypothesis test?

• A) The null hypothesis is rejected.
• B) The alternative hypothesis is rejected.
• C) The null hypothesis is not rejected.
• D) Insufficient information exists on which to make a decision.

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Definitions:

Financial Information

Data related to the financial performance and financial position of a company, including income statements, balance sheets, and cash flow statements.

Net Profit Margin

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A measure used to calculate the mean value of a company's assets over a specific period, helpful in assessing the company’s asset utilization efficiency.

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