Instruction 11-2
a Realtor Wants to Compare the Average Sales-To-Appraisal

question 3

Multiple Choice

Instruction 11-2
A realtor wants to compare the average sales-to-appraisal ratios of residential properties sold in four neighbourhoods (A, B, C, and D) . Four properties are randomly selected from each neighbourhood 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 summarised in the following table:
$$\begin{array} { | l | c | c | c | c | c | } \hline \text { Source } & \text { df } & \text { SS } & \text { MS } & \text { F } & \text { PR > F } \\\hline \text { Neighbbourhoods } & & 3.1819 & 1.0606 & 10.76 & 0.001 \\\hline \text { Error } & 12 & & & & \\\hline \text { Total } & & & & & \\\hline\end{array}$$
-Referring to Instruction 11-2,the within group mean squares is

• A) 1.06.
• B) 0.10.
• C) 0.29.
• D) 1.18.

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Definitions:

Return on Investment

A measure used to evaluate the efficiency or profitability of an investment, calculated as return divided by the cost of the investment.

Support Department Allocation Rate

A rate used to allocate the costs of support departments to producing departments or directly to products based on relevant factors or usage measures.

Cost Drivers

Factors that cause the cost of an activity or product to change, such as production volume or raw material prices.

Support Department Cost

Expenses related to the functions that assist the direct operations or production departments of a business, such as human resources or maintenance.