TABLE 10-4
a Real Estate Company Is Interested in Testing

question 89

Multiple Choice

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 correct conclusion?

• A) There is enough evidence that, on average, families in Gotham have been living in their current homes for no less time than families in Metropolis have.
• B) There is not enough evidence that, on average, families in Gotham have been living in their current homes for no less time than families in Metropolis have.
• C) There is enough evidence that, on average, families in Gotham have been living in their current homes for less time than families in Metropolis have.
• D) There is not enough evidence that, on average, families in Gotham have been living in their current homes for less time than families in Metropolis have.

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Definitions:

Trillion

A numerical value represented by 1 followed by 12 zeros, commonly used in discussions of national economies and government budgets.

Fixed-Income Security

A type of investment that pays regular income in the form of interest or dividends, such as bonds or preferred stock.

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A predetermined method or equation used to calculate a specific financial or operational metric.

Variable Level

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