TABLE 10-3 a Real Estate Company Is Interested in Testing Whether the Whether

question 200

Multiple Choice

TABLE 10-3
A real estate company is interested in testing whether the mean time that families in Gotham have been living in their current homes is less than families in Metropolis.Assume that the two population variances are equal.A random sample of 100 families from Gotham and a random sample of 150 families in Metropolis yield the following data on length of residence in current homes.
Gotham: G = 35 months, SG² = 900 Metropolis: M = 50 months,SM² = 1050
-Referring to Table 10-3,what is(are) the critical value(s) of the relevant hypothesis test if the level of significance is 0.01?

• A)t Z = -1.96
• B)t Z = ±1.96
• C)t Z = -2.080
• D)t Z = -2.33

---

Definitions:

Variable Costing

An accounting method that only includes variable costs (costs that change with production levels) in the cost of goods sold and treatment of fixed costs.

Production Costs

The total expenses incurred in the manufacture of products, including costs related to labor, raw materials, and overhead.

Variable Production Costs

Expenses that fluctuate with the level of output or production, including costs like raw materials and direct labor.

Fixed Production Costs

Costs that do not change with the level of production, such as rent for factory space or salaries for permanent staff.