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

question 144

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 null hypothesis for Levene's test for homogeneity of variances is

• A) H 0 : M A = M B = M C = M D.
• B) \(H _ { 0 } : { \sigma _ { A } ^ { 2 } } = { \sigma _ { B } ^ { 2 } } = { \sigma _ { C } ^ { 2 } } = \sigma _ { D } ^ { 2 }\)
• C) H 0 : \(\mu\) A = \(\mu\) B = \(\mu\) C = \(\mu\) D.
• D) H 0 : \(\pi\) A = \(\pi\) B = \(\pi\) C = \(\pi\) D.

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Definitions:

Retained Earnings

Profits that a company has decided to keep or reinvest in the business instead of distributing to shareholders as dividends.

Reverse Split

Procedure where a firm’s number of shares outstanding is reduced.

Stock Price

The cost of purchasing a single share of a particular company's stock on the open market, fluctuating based on demand, market conditions, and company performance.

Shares Outstanding

Shares outstanding refer to the total number of shares of a company's stock currently owned by all its shareholders, including share blocks held by institutional investors and restricted shares owned by the company’s officers and insiders.