An Urban Planning Group Is Interested in Estimating the Difference

question 15

Multiple Choice

An urban planning group is interested in estimating the difference in mean household income between two neighbourhoods. They obtain the following 95% confidence interval: (-5693, -4107)
Which of the following is true?

• A) This is a pooled t-confidence interval.
• B) There is no significant difference in the mean household incomes between the two neighbourhoods.
• C) There is a significant difference in the mean household incomes between the two neighbourhoods.
• D) This is a paired t-confidence interval and there is no significant difference in the mean household incomes between the two neighbourhoods.
• E) This is a paired t-confidence interval and the mean household income of the first neighbourhood is higher than in the second.

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Definitions:

Manufacturing Overhead

All indirect costs associated with the production process, including utilities, maintenance, and factory management expenses, not directly tied to specific units produced.

Variable Product Cost

Costs that vary directly with the volume of production, such as materials and labor directly involved in manufacturing.

Fixed Period Cost

Costs that remain constant for a specific period of time regardless of the level of output or activity.

Administrative Cost

Expenses related to the general operation of a company, including office salaries, utilities, and legal fees, but not including production costs.