It Is Believed That the Median Yearly Income in a Suburb

question 46

Multiple Choice

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. The mean and the standard deviation (respectively) for this test about the median are

• A) 32 and 4.
• B) 32 and 16.
• C) 33.5 and 4.
• D) 33.5 and 16.

---

Definitions:

Short Run

Within the field of economics, a timeframe where a company has at least one input that remains constant and unalterable.

Total Revenue

The entire revenue a company earns from selling products or services before deducting any costs.

Purely Competitive

A market structure characterized by many buyers and sellers, freely entering and exiting the market, with all firms selling identical or nearly identical products.

Unit Price

The cost per unit of a product or service, making it easier to compare the value of similar items.