A Professional Organization Is Attempting to Determine Whether Salaries of Hospital

question 65

Multiple Choice

A professional organization is attempting to determine whether salaries of hospital CFO s differ by geographical region. Five hospital CFOs were randomly selected from each of the following four regions: Maritimes, Quebec, Ontario, and Western Canada. Each CFO was then asked their annual salary. The distributions of salaries were highly skewed. The table below summarizes the results of the Kruskal-Wallis test obtained from Mega-Stat/Excel.
$$\begin{array}{l}\text { Kruskal-Wallis Test }\\\begin{array} { c c c } \hline \text { Median } & n & \begin{array} { c } \text { Avg. } \\\text { Rank }\end{array} \\\hline 59.00 & 5 & 17.20 \text { Group 1 } \\55.30 & 5 & 10.40 \text { Group 2 } \\54.10 & 5 & 9.10 \text { Group 3 } \\53.20 & 5 & 5.30 \text { Group } 4 \\\hline 55.70 & 20 & \text { Total } \\\hline & & 10.565 \text { H (corrected for ties) } \\& & 3 \text { d.f. } \\& & .0143 \text { p-value }\end{array}\end{array}$$
-Wax-com Electronics Inc.claims that a certain circuit board has a median operating life of greater than 20,000 hours.A random sample of 25 such circuit boards showed 8 circuit boards failing before 20,000 hours and 17 circuit boards failing after 20,000 hours.Assume the useful life of the circuit board is not normally distributed.Is there evidence to support their claim? What is the resulting test statistic and conclusion?

• A)1.6,fail to reject H₀
• B)1.6,reject H₀
• C)-1.6,reject H₀
• D)-1.6,fail to reject H₀
• E)1.645,reject H₀

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Definitions:

Ending Raw Materials Inventory

The value of raw materials still on hand at the end of an accounting period, which have not yet been used in the production process.

Budgeted

Pertains to the financial plans for revenues and expenses that an organization sets for a specific time period.

Finished Goods Inventory

The stock of completed products that are ready to be sold but have not yet been sold to customers.

Direct Labor-Hours

The cumulative hours that employees, who are actively engaged in the production process or delivering a service, put in.