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

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: $$\bar { X } _ { \mathrm { G } } = 35 \text { months, } \quad S _ { \mathrm { G } } { } ^ { 2 } = 900 \quad \text { Metropolis: } \quad \bar { X } _ { \mathrm { M } } = 50 \text { months, } \quad S _ { \mathrm { M } } ^ { 2 } = 1050$$
-Referring to Scenario 10-3, 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) $H _ { 0 } : \mu _ { G } - \mu _ { M } \leq 0$ versus $H _ { 1 } : \mu _ { G } - \mu _ { M } > 0$
c) $H _ { 0 } : \underline { \mu } _ { G } - \underline { \mu } _ { M } = 0$ versus $H _ { 1 } : \underline { \mu } _ { G } - \underline { \mu } _ { M } \neq 0$
d) $H _ { 0 } : \bar { X } _ { G } - \bar { X } _ { M } \geq 0$ versus $H _ { 1 } : \bar { X } _ { G } - \bar { X } _ { M } < 0$

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