Conduct a Sign Test on the Following Sample Data to See

question 55

Multiple Choice

Conduct a sign test on the following sample data to see if the median differs from 122. ​ ​
Choose the correct p-value and conclusion.(Use α = 0.10) .

• A) p = 0.0592; there is sufficient statistical evidence to reject the null hypothesis and state that the median appears to be different than 122.
• B) p = 0.3018; there is insufficient evidence to state that the median differs from 122.
• C) p = 0.1509; there is sufficient statistical evidence to reject the null hypothesis and state that the median appears to be different than 122.
• D) p = 0.8491; there is insufficient evidence to reject the null hypothesis and state that the median differs from 122.

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Definitions:

Bad Debts Expense

An expense account reflecting the cost of accounts receivable that a company does not expect to collect due to customer defaults.

Allowance Method

An accounting technique used to account for bad debts by estimating and recording uncollectible accounts receivable.

Outstanding Receivables

The total amount of money owed to a company by its customers for goods or services delivered but not yet paid for.

Allowance for Doubtful Accounts

A reserve for accounts receivable that may not be collectable, reducing the book value of accounts receivable to a more realistic value.