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

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.
$$\text { Gotham: }\bar{ X} _ { G } = 35 \text { months, } s _G ^ { 2 } = 900 \quad \text { Metropolis: }\bar{X} _ { M } = 50 \text { months, } \mathrm { s_M } ^ { 2 } = 1050$$
-Referring to Table 10-4, which of the following represents the relevant hypotheses tested by the real estate company?

A) $H_{0}: \mu_{G}-\mu_{M} \geq 0$ versus $H_{1}: \mu_{G}-\mu_{M}<0$
B) $H_{0}: \mu_{G}-\mu_{M}=0$ versus $H_{1}: \mu_{G}-\mu_{M} \neq 0$
C) $H_{0}: \mu_{G}-\mu_{M} \leq 0$ versus $H_{1}: \mu_{G}-\mu_{M}>0$
D) $H_{0}: \bar{X}_{G}-\bar{X}_{M} \geq 0$ versus $H_{1}: \bar{X}_{G}-\bar{X}_{M}<0$

Correct Answer:

Verified

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