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

question 179

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 = 1,050
-Referring to Table 10-3, what is(are) the critical value(s) of the relevant hypothesis test if the level of significance is 0.05?

• A) t ≅ Z = -1.645
• B) t ≅ Z = ±1.96
• C) t ≅ Z = -1.96
• D) t ≅ Z = -2.080

---

Definitions:

Machine-Hours

A measure of production time using machines, typically used as a basis for allocating manufacturing overhead to products.

Denominator Level

In cost accounting, refers to the total quantity or capacity used to allocate fixed costs to different cost objects.

Budget Variance

The difference between what was budgeted for a period and what was actually spent or received.

Volume Variance

The difference between the expected (budgeted) volume of production or sales and the actual volume, impacting costs and revenues.