A Professional Organization Is Attempting to Determine Whether Salaries of Hospital

question 2

Multiple Choice

A professional organization is attempting to determine whether salaries of hospital CFOs differ by geographical region.Five hospital CFOs were randomly selected from each of the following four regions of the United States: East,Midwest,South,and West.Each CFO was then asked his or her annual salary.The salary distributions were highly skewed.The table below summarizes the results of the Kruskal-Wallis test obtained from MegaStat/Excel. $$\begin{array}{l}\text { Kruskal-Wallis Test }\\\begin{array} { c c c } \hline \text { Median } & n & \begin{array} { c } \text { Avg. } \\\text { Rank }\end{array} \\\hline 59.00 & 5 & 17.20 \text { Group 1 } \\55.30 & 5 & 10.40 \text { Group 2 } \\54.10 & 5 & 9.10 \text { Group } 3 \\53.20 & 5 & 5.30 \text { Group } 4 \\\hline 55.70 & 20 & \text { Total } \\\hline & & 10.565 \mathrm { H } \text { (corrected for ties) } \\&&3 \text { df. } \\& & .0143 \text { p-value }\end{array}\end{array}$$
At a significance level of .05,which one of the following statements is correct regarding the following null hypothesis?
H₀: The four populations under consideration have identical locations.

• A)We reject H₀ and conclude that there is very strong evidence that the median hospital CFO salaries differ among all four regions in the United States.
• B)We failed to reject H₀ and conclude that there is not sufficient evidence that the median hospital CFO salaries differ among any of the four regions of the United States.
• C)We do not reject H₀ and conclude that there is only adequate evidence that the median hospital CFO salaries differ between at least two of the four regions in the United States.
• D)We reject H₀ and conclude that there is strong evidence that the median hospital CFO salaries differ between at least two of the four regions in the United States.
• E)We do not reject H₀ and conclude that all 4 populations under consideration are identical in their locations.

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Definitions:

Anticipates

The action of foreseeing or preparing for future events or needs.

Marginal Cost

The cost incurred by producing one additional unit of a product or service, crucial for decision-making in production and pricing strategies.

Marginal Benefit

The additional satisfaction or value obtained from acquiring one more unit of a product or service.

Expected Total Return

The sum of all anticipated earnings from an investment, including capital gains, interest, and dividends, over a specified period, reflecting its potential profitability.