Instruction 11-3
a Realtor Wants to Compare the Average Sales-To-Appraisal

question 127

Multiple Choice

Instruction 11-3
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:
$\begin{array}{llclcl}\text { Source } & \text { df } & \text { SS } & \text { MS } & \text { F } & \text { PR }>\text { F } \\\hline \text { Neighbourhoods } && 3.1819 & 1.0606 & 10.76 & 0.001 \\\text { Error } & 12 & & & &\\total&&4.3644\end{array}$
-Referring to Instruction 11-3,the p-value of the test statistic for Levene's test for homogeneity of variances is

• A)3.49.
• B)0.25.
• C)0.86.
• D)0.64.

Discuss the rational decision-making model and how it can be violated or adhered to.

Understand the role of emotion and mood in promoting certain types of decision-making strategies.

Comprehend the mechanisms and approaches to prevent escalation of commitment to failing projects.

Recognize the factors that contribute to poor decision making, including stress and group dynamics.

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Definitions:

Salvage Value

The estimated residual value of an asset after it has reached the end of its useful life.

Internal Rate

Often refers to the internal rate of return (IRR), which is the discount rate that makes the net present value (NPV) of all cash flows from a particular project zero.

Working Capital

The difference between a company's current assets and current liabilities.

Net Present Value

A method of valuing a series of future cash flows by discounting them back to their present value using a specified rate of return.