There Have Been Complaints Recently from Homeowners in the North

question 23

Multiple Choice

There have been complaints recently from homeowners in the north end claiming that their homes have been assessed at values that are too high compare with other parts of town.They say that the mean increase from last year to this year has been higher in their part of town than elsewhere.To test this,the assessor's office staff plans to select a random sample of north end properties (group 1) and a random sample of properties from other areas within the city (group 2) and perform a hypothesis test.The following sample information is available: Assuming that the null hypothesis will be tested using an alpha level equal to 0.05,what is the value of the test statistic?

• A)z = 1.578
• B)t = 1.7011
• C)t = 0.2388
• D)t = 0.3944

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Definitions:

Face Value

The nominal or dollar value printed on a financial instrument such as a bond or stock certificate, representing the value the issuer promises to pay at maturity.

Investment Yield

The earnings generated and realized on an investment over a particular period of time, expressed as a percentage of the investment's cost.

Maturity Date

The final payment date of a loan or other financial instrument, at which point the principal (and all remaining interest) is due to be paid.

Compound Annual

The rate of return that would be required for an investment to grow from its beginning balance to its ending one, assuming the profits were reinvested at the end of each period of the investment's lifespan.