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: X G = 35 months, SG 2 = 900 Metropolis: X M = 50 months, SM 2 = 105

1. Referring to Scenario 1, which of the following represents the relevant hypotheses tested by the real estate company? (KEYWORDS: pooled-variance t test, form of hypothesis)

A. H0: G-M 0 versus H1: G-M< 0

B. H0: G-M 0 versus H1: G-M > 0

C. H0: G-M = 0 versus H1: G-M=0

D. H0: XG-XM 0 versus H1: XG-XM< 0

2. Referring to Scenario 1, what is the estimated standard error of the difference between the 2 sample means? (KEYWORDS: pooled-variance t test, standard error)

A. 4.06

B. 5.61

C. 8.01

D. 16.00

Referring to Scenario 1, what is a point estimate for the mean of the sampling distribution of the difference between the 2 sample means? (KEYWORDS: pooled-variance t test, unbiased, point estimate)

A. -22

B. -10

C. -15

D. 0

4. Referring to Scenario 1, what is the test statistic for the difference between sample means? (KEYWORDS: pooled-variance t test, test statistic)

A. -8.75

B. -3.69

C. -2.33

D. -1.96

5. Referring to Scenario 1, suppose = 0.05. Which of the following represents the result of the relevant hypothesis test? (KEYWORDS: pooled-variance t test, decision)

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.