TABLE 10-17 a Realtor Wants to Compare the Mean Sales-To-Appraisal Ratios of Ratios

question 41

Multiple Choice

TABLE 10-17
A realtor wants to compare the mean sales-to-appraisal ratios of residential properties sold in four neighborhoods (A, B, C, and D) . Four properties are randomly selected from each neighborhood and the ratios recorded for each, as shown below.
A: 1.2, 1.1, 0.9, 0.4 C: 1.0, 1.5, 1.1, 1.3
B: 2.5, 2.1, 1.9, 1.6 D: 0.8, 1.3, 1.1, 0.7
Interpret the results of the analysis summarized in the following table:

-Referring to Table 10-17,

• A) at the 0.05 level of significance, the mean ratios for the four neighborhoods are not all the same.
• B) at the 0.01 level of significance, the mean ratios for the four neighborhoods are all the same.
• C) at the 0.10 level of significance, the mean ratios for the four neighborhoods are not significantly different.
• D) at the 0.05 level of significance, the mean ratios for the four neighborhoods are not significantly different from 0.

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Definitions:

Financial Lease

A type of lease in which the lessee has use of the asset for a significant part of its useful life, offering benefits similar to ownership.

Lessor

An entity that rents out an asset or property to another party, known as the lessee.

Incremental Annual Cash Flow

Incremental Annual Cash Flow is the additional cash flow an enterprise generates from taking on a new project or investment, over its existing cash flow.

MACRS Depreciation

A method of depreciation used for tax purposes in the United States which allows businesses to recover their investments in certain property over a specified life.