The Employees at the East Vancouver Office of a Multinational

question 82

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?
This example is what type of test?

• A) One sample test of means.
• B) Two sample test of means.
• C) Paired t-test.
• D) Test of proportions.

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Definitions:

Technological Advances

Innovations and improvements in technology that enable new products, improved processes, and greater efficiency across various industries and sectors.

Savings Rate

The percentage of money that individuals or entities save from their disposable income, often considered an indicator of economic health.

Consumer Expenditures

The total amount spent by consumers on goods and services within a given period.

U.S. Consumers

Individuals or households in the United States that purchase goods and services for personal use.