The Employees at the East Vancouver Office of a Multinational

Multiple Choice

The employees at the East Vancouver office of a multinational company are demanding higher
Salaries than those offered at the company office located in Oshawa Ontario. Their justification for
The pay difference is that the difference between the average price of single-family houses in East
Vancouver and that in Oshawa is more than $60,000. Before making a decision, the company
Management wants to study the difference in the prices of single-family houses for sale at the two
Locations.
The results of their search of recent house sales are as follows (in $1000, rounded to the nearest
Thousand) :
Assuming that the population distributions are approximately normal, can we conclude at the 0.05
Significance level that the difference between the two population means is greater than $60,000?
If we let East Vancouver be population 1 and Oshawa be population 2, what is the null hypothesis?

A) µ1 = µ2, or µd = 0
B) µ1 ≠ µ2, or µd ≠ 0
C) µ1 - µ2 ≤ 60
D) µ1 - µ2 > 60