SCENARIO 10-3
a Real Estate Company Is Interested in Testing

question 269

Multiple Choice

SCENARIO 10-3
A real estate company is interested in testing whether the mean time that families in Gotham have been living in their current homes is less than families in Metropolis.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.
Gotham:
$$\bar { X } _ { \mathrm { G } } = 35 \text { months, } \quad S _ { \mathrm { G } } { } ^ { 2 } = 900 \quad \text { Metropolis: } \quad \bar { X } _ { \mathrm { M } } = 50 \text { months, } \mathrm { S } _ { \mathrm { M } } { } ^ { 2 } = 1050$$
-Referring to Scenario 10-3, suppose $\alpha$ = 0.10.Which of the following represents the result of the relevant hypothesis test?

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

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Definitions:

Negotiable Instruments

Financial documents that guarantee the payment of a specific amount of money, either on demand or at a set time.

Bills of Exchange

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Uniform Commercial Code

A comprehensive set of laws governing all commercial transactions in the United States, intended to harmonize the law among the states.

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