A Real Estate Company Is Analyzing the Selling Prices of Residential

question 14

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. At a significance level of .05,we

• A) reject H₀;conclude that the residential home selling prices are not distributed according to a normal distribution.
• B) do not reject H₀;conclude that the residential home selling prices are not distributed according to a normal distribution.
• C) reject H₀;conclude that the residential home selling prices are distributed according to a normal distribution.
• D) do not reject H₀;conclude that the residential home selling prices are distributed according to a normal distribution.

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Definitions:

Standard of Comparison

A benchmark or criterion used to evaluate the quality or performance of a product, service, or individual.

Equity

The value of shares issued by a company, representing ownership interest, or fairness and impartiality within the context of employment or law.

Benefits

Advantages or perks provided to employees in addition to their salaries, such as health insurance, retirement plans, and paid time off.

Pay Ranges

The spectrum of compensation offered for different roles within an organization, usually determined by job function and experience level.