SCENARIO 11-2 a Realtor Wants to Compare the Mean Sales-To-Appraisal Ratios of Ratios

question 126

Multiple Choice

SCENARIO 11-2
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 Scenario 11-2,what should be the conclusion for the Levene's test for homogeneity of variances at a 5% level of significance?

• A)There is insufficient evidence that the variances are all the same.
• B)There is sufficient evidence that the variances are all the same.
• C)There is insufficient evidence that the variances are not all the same.
• D)There is sufficient evidence that the variances are not all the same.

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Definitions:

Revolving Line

A type of credit facility that allows a borrower to withdraw, repay, and re-borrow funds up to a specified credit limit.

Commitment Fee

A charge imposed by a lender on a borrower for not utilizing a credit line or for funds that have not been disbursed.

Revolving Credit

A flexible credit line that allows individuals or businesses to borrow, repay, and borrow again up to a certain limit, commonly seen in credit cards and lines of credit.

Interest Expense

It refers to the cost incurred by an organization or individual for borrowing funds, typically represented as a yearly interest rate applied to the loan's principal amount.