The Employees at the East Vancouver Office of a Multinational

question 87

Multiple Choice

The employees at the East Vancouver office of a multinational company are demanding higher
Salaries than those offered at the company office located in Oshawa Ontario. Their justification for
The pay difference is that the difference between the average price of single-family houses in East
Vancouver and that in Oshawa is more than $60,000. Before making a decision, the company
Management wants to study the difference in the prices of single-family houses for sale at the two
Locations.
The results of their search of recent house sales are as follows (in $1000, rounded to the nearest
Thousand) :
Assuming that the population distributions are approximately normal, can we conclude at the 0.05
Significance level that the difference between the two population means is greater than $60,000?
What is the alternate hypothesis?

• A) µ1 = µ2, or µd = 0
• B) µ1 ≠ µ2, or µd ≠ 0
• C) µ1 - µ2 ≤ 60
• D) µ1 - µ2 > 60

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Definitions:

Promissory Breach

Occurs when a party indicates by their actions, or explicitly states, that they will not fulfill their obligations under a contract.

Implied Warranty

A guarantee embedded in transactions by law, based on the assumption that a product will meet certain standards of quality and reliability.

Escrow Account

A financial arrangement where a third party holds and regulates payment of the funds required for two parties involved in a given transaction.

Common Area

Shared spaces in a property such as hallways, lobbies, and amenities available to all occupants or tenants.