Exhibit 19-3 It Is Believed That the Median Yearly Income in a in a Suburb

question 60

Multiple Choice

Exhibit 19-3
It is believed that the median yearly income in a suburb of Atlanta is $70,000. A sample of 67 residents was taken. Thirty-eight had yearly incomes above $70,000, 26 had yearly incomes below $70,000, and 3 had yearly incomes equal to $70,000. The null hypothesis to be tested is H₀: median = $70,000.
-Refer to Exhibit 19-3. The test statistic has a value of

• A)1.00
• B)1.50
• C)2.00
• D)2.50

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Definitions:

Gross Profit Method

A method used in accounting to estimate the value of a company's inventory by applying the gross margin ratio to net sales.

Inventory

Consists of the goods and materials a business holds for the purpose of resale or production.

Net Income

The total profit of a company after all expenses and taxes have been deducted from revenue. It is often referred to as the bottom line.

Error

A discrepancy or mistake found in a document, calculation, or process.