One of the Factors That a Company Will Use in Determining

Essay

One of the factors that a company will use in determining whether it will locate a new facility in a community is the status of the real estate market. The managers believe that an important measure of the real estate market is the average length of time that homes stay on the market before selling. They believe that if the mean time on the market is less than 45 days, the real estate market is favorable. To test this in a particular area, a random sample of n = 100 homes that sold during the past six months was selected. The mean for this sample was 40 days. It is believed that the population standard deviation is 15 days. If the test is conducted using a 0.05 level of significance, what conclusion should be reached?