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

question 28

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 null hypothesis should be

• A)rejected
• B)not rejected
• C)revised
• D)None of these alternatives is correct.

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Definitions:

Capital

In finance, it refers to the financial assets or resources that individuals or enterprises use for investing, producing goods, or services.

Real Assets

Physical or tangible assets that have intrinsic value due to their substance and properties, such as real estate, commodities, or natural resources.

Buying a Bond

The act of purchasing a bond, a debt security issued by entities such as governments or corporations, where the issuer owes the holders a debt and is obliged to pay interest.

Debt Relationship

The relationship between a borrower and lender, defined by the terms under which money or goods are borrowed.