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

question 205

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, suppose α = 0.01. Which of the following represents the correct conclusion?

• A) There is not enough evidence that the mean amount of time families in Gotham have been living in their current homes is less than families in Metropolis.
• B) There is enough evidence that the mean amount of time families in Gotham have been living in their current homes is less than families in Metropolis.
• C) There is not enough evidence that the mean amount of time families in Gotham have been living in their current homes is not less than families in Metropolis.
• D) There is enough evidence that the mean amount of time families in Gotham have been living in their current homes is not less than families in Metropolis.

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Definitions:

Terminal Value

The estimated value of a business or investment at the end of a specified period, often used in discounted cash flow analysis.

Market Potential

An estimate of the maximum total sales of a product or service by all suppliers in a market during a specific time period, under certain conditions.

FDA Approval

FDA Approval is the authorization granted by the U.S. Food and Drug Administration for a drug, medical device, or food product to be marketed or sold after meeting safety and efficacy standards.

Terminal Value

The value of an investment at the end of a specified period, often used in discounted cash flow analysis to estimate future cash flows beyond a forecast period.