Five Years Ago, the Average Starting Salary of a New

question 71

Multiple Choice

Five years ago, the average starting salary of a new college graduate with a major in marketing was $34,000. A random sample of 10 graduates from this year's graduating class of a local university yielded the following starting salaries in thousands of dollars: 28, 36, 25, 37, 35, 24, 38, 45, 39, 36. The local university wants to determine if the median starting salary for marketing graduates has increased in the last five years. State the alternative hypothesis. Assume that the population of starting salaries in marketing is not normally distributed.

• A) H_A: M_d < 34,000
• B) H_A: M_d > 34,000
• C) H_A: M_d ≠ 34,000
• D) H_A: M_d = 34,000

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Definitions:

Credit Period

The time frame between when a purchase is made and when the payment for that purchase is due, without incurring any interest.

Cash Discount

A reduction in the price of an item for sale, offered by the seller as an incentive for the buyer to pay promptly.

Trade Credit

Short-term financing extended by a seller to a buyer allowing the latter to purchase goods or services and pay for them at a later date.

Trade Credit

The credit extended to a buyer by a supplier, allowing the buyer to purchase goods or services and pay for them at a later date.