A Local Real Estate Agent Claims That the Median Selling $$z = \frac { ( 53 + .5 ) - \left( .5 ^ { * } 100 \right) } { .5 * \sqrt { 100 } } = \frac { 3.5 } { 5 } = .70$$

question 38

Multiple Choice

A local real estate agent claims that the median selling price of homes in a major midwestern city is more than $200,000.Suppose a random sample of 100 homes sold in the last six months is taken and 53 sold for over $200,000.Using ? = .01,test the real estate agent's claim.What do you conclude about the selling prices of the homes?

• A)Reject the null hypothesis.
• B)Do not reject the null hypothesis.
• \[z = \frac { ( 53 + .5 ) - \left( .5 ^ { * } 100 \right) } { .5 * \sqrt { 100 } } = \frac { 3.5 } { 5 } = .70\]

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Definitions:

Disposable Income

The cash pile households can utilize for their spending and savings needs after income taxes are handled.

MPC

Marginal Propensity to Consume, which represents the ratio of change in consumer spending to a change in household income.

MPS

The marginal propensity to save, which is the proportion of an increase in income that is saved rather than spent on consumption.

Disposable Income

Funds at households' discretion for savings and spending pursuits after the deduction of income taxes.