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

ID: 2959798 • Letter: A

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. Suppose alpha = 0.10. Which of the following represents the result of the relevant hypothesis test?

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

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 make a decision.

Explanation / Answer

   Option (D) is correct.    Insufficient information exists on which to make a decision.
   There is no information regarding the mean and standard devation for metropolis.    Without knowing that information, we can't conclude the inference.
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