TABLE 10-4
A real estate company is interested in testing whether, on average, families in Gotham have been living in their current homes for less time than families in Metropolis have. Assume that the two population variances are equal. A random sample of 100 families from Gotham and a random sample of 150 families in Metropolis yield the following data on length of residence in current homes.
$$\text { Gotham: } \bar{X} _ { G } = 35 \text { months, } s _G ^ { 2 } = 900 \text { Metropolis: } \bar{X} _ { M } = 50 \text { months, } s _ { M ^ { 2 } } = 1050$$
-Referring to Table 10-4, suppose ? = 0.10. Which of the following represents the result of the relevant hypothesis test?
A) The null hypothesis is not rejected.
B) The alternative hypothesis is rejected.
C) The null hypothesis is rejected.
D) Insufficient information exists on which to make a decision.

Question

TABLE 10-4
A real estate company is interested in testing whether, on average, families in Gotham have been living in their current homes for less time than families in Metropolis have. Assume that the two population variances are equal. A random sample of 100 families from Gotham and a random sample of 150 families in Metropolis yield the following data on length of residence in current homes.
 $$\text { Gotham: } \bar{X} _ { G } = 35 \text { months, } s _G ^ { 2 } = 900 \text { Metropolis: } \bar{X} _ { M } = 50 \text { months, } s _ { M ^ { 2 } } = 1050$$
-Referring to Table 10-4, suppose ? = 0.10. Which of the following represents the result of the relevant hypothesis test?
A) The null hypothesis is not rejected.
B) The alternative hypothesis is rejected.
C) The null hypothesis is rejected.
D) Insufficient information exists on which to make a decision.

Quizplus · Accepted Answer

The null hypothesis is rejected because the sample mean for Gotham is significantly less than that for Metropolis, and the test statistic calculated using the pooled variance and sample sizes indicates a significant difference at the 0.10 significance level.

TABLE 10-4 a Real Estate Company Is Interested in Testing

TABLE 10-4
a Real Estate Company Is Interested in Testing