A Random Sample of Stipends of Teaching Assistants in Economics $\alpha = 0.05$

question 37

Multiple Choice

A random sample of stipends of teaching assistants in economics is listed. Is there sufficient evidence at the $\alpha = 0.05$ level to conclude that the average stipend differs from $\$ 15,000$ ? The stipends listed (in dollars) are for the academic year.
$$\begin{array} { l l l l } \hline 13,500 & 18,500 & 11,500 & 14,856 \\12,685 & 13,919 & 13,500 & 12,481 \\17,104 & 12,783 & 15,838 & 15,500 \\\hline\end{array}$$

• A) There is not enough information to draw a conclusion.
• B) No. There is not enough evidence to conclude that the average stipend differs from $15,000.
• C) Yes. There is enough evidence to conclude that the average stipend differs from $15,000.

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Definitions:

Par Common Stock

Par Common Stock refers to the nominal or face value assigned to common shares in the corporate charter, which has implications for stock issuance and accounting.

Stockholders' Equity

The stake of shareholders in a company, determined by subtracting the company's liabilities from its assets, signifying their claim on the company's resources.

Reacquired Shares

Shares that were issued and subsequently bought back by the issuing company.

Balance Sheet

A financial statement that provides a snapshot of a company's financial position at a particular time, showing assets, liabilities, and shareholders' equity.