A Relative Frequency Histogram for the Sale Prices of Homes

question 125

Multiple Choice

A relative frequency histogram for the sale prices of homes sold in one city during 2010 is shown below. Basedon the histogram, is a large sample necessary to conduct a hypothesis test about the mean sale price? If so,why?

• A) Yes; data do not appear to be normally distributed but skewed right.
• B) Yes; data do not appear to be normally distributed but skewed left.
• C) No; data appear to be normally distributed.
• D) Yes; data do not appear to be normally distributed but bimodal.

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Definitions:

Parent Company

A corporation that owns a controlling share of the stock in another company, making the latter a subsidiary.

Fair Value Method

An accounting approach that measures and reports assets and liabilities on the basis of their estimated or actual fair market price.

Carrying Value

The book value of assets and liabilities on a company's balance sheet, excluding market value fluctuations.

Common Stock

Equity securities representing ownership in a corporation, with voting rights and potential dividends.