A Real Estate Company Is Analyzing the Selling Prices of Residential

question 75

Multiple Choice

A real estate company is analyzing the selling prices of residential homes in a given community.140 homes that have been sold 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 a normal distribution.In order to determine whether the selling prices of homes included in the random sample are normally distributed,the statistician divides the data into 6 classes of equal size and records the number of observations in each class.She then performs a chi-square goodness-of-fit test for normal distribution.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 a normal distribution.
• B) H₀: The residential home selling prices are not distributed according to a 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 other answers is correct.

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Definitions:

Quantity Term

A specific measure or amount of something, often used in business or commerce to indicate volume, number, or degree.

Remedy

A means of legal reparation or correction, often involving compensation or specific performance to address a wrong or enforce a right.

Corporate Stocks

Shares of ownership in a corporation, representing a claim on part of the company's assets and earnings.

Bonds

Fixed-income securities representing a loan made by an investor to a borrower, typically corporate or governmental, with predefined terms of repayment and interest.