Exhibit 8-2

question 31

Multiple Choice

Exhibit 8-2.The mortgage foreclosure crisis that preceded the Great Recession impacted the U.S.economy in many ways,but it also impacted the foreclosure process itself as community activists better learned how to delay foreclosure,and lenders became more wary of filing faulty documentation.Suppose the duration of the eight most recent foreclosures filed in the city of Boston (from the beginning of foreclosure proceedings to the filing of the foreclosure deed,transferring the property) has been 230 days,420 days,340 days,367 days,295 days,314 days,385 days,and 311 days.Assume the duration is normally distributed. Refer to Exhibit 8-2.Construct a 90% confidence interval for the mean duration of the foreclosure process in Boston.

• A)[259.7400,405.7600]
• B)[293.2137,372.2863]
• C)[298.4296,367.0704]
• D)[303.2282,362.2718]

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Definitions:

Pooled Variance

Acombined estimate of variance for two or more groups in a sample, assuming that the populations have equal variances.

Sampling Distribution

The distribution of a statistic (like the mean or variance) derived from a large number of samples drawn from a specific population.

Sample Mean Difference

The difference between the average values from two samples, used in hypothesis testing to compare two groups.

Equal-variances Test

A statistical test used to determine if two populations have the same variance.