A Professional Organization Is Attempting to Determine Whether Salaries of Hospital

question 19

Multiple Choice

A professional organization is attempting to determine whether salaries of hospital CFOs differ by geographical region. Five hospital CFOs were randomly selected from each of the following four regions of the United States: East, Midwest, South, and West. Each CFO was then asked his or her annual salary. The salary distributions were highly skewed. The table below summarizes the results of the Kruskal-Wallis test obtained from MegaStat/Excel. Kruskal-Wallis Test
At a significance level of .05, which one of the following statements is correct regarding the following null hypothesis?
H₀: The four populations under consideration have identical salaries.

• A) We reject H₀ and conclude that there is very strong evidence that the median hospital CFO salaries differ among all four regions in the United States.
• B) We failed to reject H₀ and conclude that there is not sufficient evidence that the median hospital CFO salaries differ among any of the four regions of the United States.
• C) We do not reject H₀ and conclude that there is only adequate evidence that the median hospital CFO salaries differ between at least two of the four regions in the United States.
• D) We reject H₀ and conclude that there is strong evidence that the median hospital CFO salaries differ between at least two of the four regions in the United States.
• E) We do not reject H₀ and conclude that all four populations under consideration are identical in their locations.

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Definitions:

Job-Order Costing System

A costing method used to calculate the costs associated with individual jobs or orders, tracking direct labor, direct materials, and manufacturing overhead per job.

Predetermined Overhead Rate

It is a rate used to allocate estimated overhead costs to cost objects based on a chosen activity base, calculated before the period begins.

Machine-Hours

A measure of the amount of time a machine is used during the production process.

Variable Manufacturing Overhead

Costs that vary directly with the level of production output and are a part of the total manufacturing overhead.