SCENARIO 10-3
A real estate company is interested in testing whether the mean time that families in Gotham have been living in their current homes is less than families in Metropolis.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. Gotham: x̄ G = 35 months,S G 2 = 900 Metropolis: x̄ M = 50 months,S M 2 = 1050
-Referring to Scenario 10-3,suppose α = 0.10.Which of the following represents the result of the relevant hypothesis test?
A)The alternative hypothesis is rejected.
B)The null hypothesis is rejected.
C)The null hypothesis is not rejected.
D)Insufficient information exists on which to decide.

Question

SCENARIO 10-3
A real estate company is interested in testing whether the mean time that families in Gotham have been living in their current homes is less than families in Metropolis.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.  Gotham: x̄ G = 35 months,S G 2 = 900 Metropolis: x̄ M = 50 months,S M 2 = 1050
-Referring to Scenario 10-3,suppose α = 0.10.Which of the following represents the result of the relevant hypothesis test?
A)The alternative hypothesis is rejected.
B)The null hypothesis is rejected.
C)The null hypothesis is not rejected.
D)Insufficient information exists on which to decide.

Quizplus · Accepted Answer

The null hypothesis is that the mean time for Gotham is equal to or greater than Metropolis. The sample means and variances suggest a significant difference, and with α = 0.10, the null hypothesis is rejected, indicating Gotham's mean time is less.

SCENARIO 10-3 a Real Estate Company Is Interested in Testing Whether the Whether