Suppose the Average Size (In Square Feet) of Homes in a Certain

question 20

Multiple Choice

Suppose the average size (in square feet) of homes in a certain region is 2101. Assume the variable is normally distributed with standard deviation 120. If a person in the region was intending to build a 2227 square foot home but downsized and built a 1873 square foot home, what was the change in percentile rank from the original plan to the actual home that was built?

• A) The change in percentile rank is 71.
• B) The change in percentile rank is 94.
• C) The change in percentile rank is 82.
• D) The change in percentile rank is 12.

Recognize the importance of sample size and variance in estimating population parameters.

Understand and apply the t-test for comparing means before and after a treatment.

Interpret the impact of data organization (matched pairs vs. independent samples) on statistical significance testing.

Calculate the minimum sample size required for testing hypotheses about means with specific confidence levels and margins of error.

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Definitions:

Direct Materials

Raw materials that are directly used in the manufacturing of a product and can be easily traced to the finished product.

Direct Labor

The cost of labor that can directly be associated with the production of goods or services.

Overhead

Indirect costs related to production or operations, excluding direct labor and direct materials costs.

Incremental Income

The additional income that is generated by increasing sales or production by one additional unit.