The Eagle Ridge Contractors' Association Claims the Average Price of a Home

question 42

Multiple Choice

The Eagle Ridge Contractors' Association claims the average price of a home in their subdivision is
$125,150, with a standard deviation of $7,350. A sample of 36 homes for sale in this subdivision had an
average selling price of $123,550. Is there evidence that the costs of homes for sale in this subdivision are
actually lower than claimed?
-In a particular city, the average salary of secretaries is $29,000 per year. Secretaries at Company A claim that they are paid less than the city average. In a sample of 50 secretaries, their average salary was
$25,000 per year with a standard deviation of $5,000. What is the test statistic for this hypothesis?

• A) -5.66
• B) -0.80
• C) 0.80
• D) 5.66

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Definitions:

Indifference Curves

Graphical representations used in microeconomics to illustrate different combinations of two goods that provide the same level of utility to a consumer.

Chardonnay

A variety of green-skinned grapes used in the production of white wine, characterized by its versatility and flavor profile.

Quiche

A savory, open-faced pastry crust filled with a mixture of eggs, milk, cheese, and sometimes meat or vegetables.

Utility Function

A mathematical representation of how choices lead to satisfaction levels for consumers, indicating preferences among various sets of goods and services.