Suppose That a Realtor Is Interested in Comparing the Price

question 20

Essay

Suppose that a realtor is interested in comparing the price of midrange homes in two cities in a midwestern state.She conducts a small survey in the two cities,looking at the price of midrange homes.Assume equal population variances.
$\begin{array} { l r r } & \text { City A } & \text { City B } \\\text { Sample Mean } & 86,900 & 84,000 \\\text { Sample Std Dev } & 2300 & 1750 \\\text { Sample Size } & 9 & 7\end{array}$
Set up the alternative hypothesis to test the claim that there is a difference in the mean price of midrange homes of the two cities.

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Definitions:

Cost of Understocking

The financial loss or opportunity cost incurred by a business when it does not hold enough inventory to meet customer demand.

Optimal Cycle

Refers to the most efficient sequence or timing of events or operations to achieve the best outcome.

Fire Sale

A sale of goods at extremely discounted prices, typically due to the seller's urgent need to dispose of these items quickly.

Demand Uncertainty

Refers to the unpredictable nature and variability of customer demand for products or services, making it challenging to plan effectively.