A Local Real Estate Appraiser Analyzed the Sales Prices of Homes

question 127

Multiple Choice

A local real estate appraiser analyzed the sales prices of homes in 2 neighborhoods to the corresponding appraised values of the homes. The goal of the analysis was to compare the distribution of sale-to-appraised ratios from homes in the 2 neighborhoods. Random and independent samples were selected from the 2 neighborhoods from last year's homes sales, 8 from each of the 2 neighborhoods. Identify the nonparametric method that would be used to analyze the data.

• A) X²-test for the differences among more than two proportions
• B) McNemar test for the difference between two proportions
• C) the Wilcoxon rank sum test, using the test statistic T₁
• D) X²-test for the variance

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Definitions:

Fixed Overhead

Refers to the regular, static expenses of operating a business that are not affected by changes in production volume or sales.

Production Budget

A financial plan outlining the costs associated with the production process, including materials, labor, and overhead for a specific period.

Variable Overhead

Costs that vary directly with the level of production or business activity, including utilities and materials used in production.