A Real Estate Company Is Analyzing the Selling Prices of Residential

question 16

Multiple Choice

A real estate company is analyzing the selling prices of residential homes in a given community.140 homes that have been solved in the past month are randomly selected and their selling prices are recorded.The statistician working on the project has stated that in order to perform various statistical tests,the data must be distributed according to normal distribution.In order to determine whether the selling prices of homes included in the random sample are normally distributed,the data is divided into 6 classes of equal size and the number of observations in each class is recorded.The chi-square goodness of fit test for normal distribution is performed and the results are summarized in the following table: What is the appropriate null hypothesis?

• A)H₀: The residential home selling prices are distributed according to normal distribution.
• B)H₀: The residential home selling prices are not distributed according to normal distribution.
• C)H₀: The distribution of residential home selling prices is either right or left skewed.
• D)H₀: The distribution of the residential home selling prices is symmetric.
• E)None of the above is correct.

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Definitions:

Incremental Manufacturing Cost

The additional cost associated with manufacturing one more unit of a product, encompassing additional materials, labor, and overhead costs.

Fixed Cost

Costs that remain unchanged regardless of the level of production or sales activities within a certain range and period.

Variable Cost

Costs that vary directly with the level of production or service, such as materials and labor.

Traditional Format

A foundational approach to accounting and finance that emphasizes historical cost accounting, generally accepted accounting principles (GAAP), and the use of financial statements.