A real estate company is interested in testing whether, on average, families in

Question

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 data on length of residence in current homes. Referring to Table, what is(are) the critical value(s) of the relevant hypothesis test if the level of significance is 0.05?

Gotham: XG = 35 months, SG = 900 Metropolis: XM =
(the X's should have a line over them)

- t . Z = - 1.645
- t . Z = ± 1.96
- t . Z = - 1.96
- t . Z = - 2.080

Explanation / Answer

Given a=0.05, the critical value is Z(0.05)=-1.645 (check standard normal table)

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