An Employee Receives an Hourly Rate of $27, with Time

question 131

Multiple Choice

An employee receives an hourly rate of $27, with time and a half for all hours worked in excess of 40 during a week.Payroll data for the current week are as follows: hours worked, 46; federal income tax withheld, $350; cumulative earnings for year prior to current week, $99,700; social security tax rate, 6.0% on maximum of $106,800; and Medicare tax rate, 1.5% on all earnings.What is the net pay for the employee?

• A) $798.85
• B) $873.77
• C) $953.16
• D) $1,223.77

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Definitions:

Sign Test

A non-parametric test used to evaluate the difference between paired samples, based on the direction of the differences between the pairs, not their magnitude.

T Test

A statistical test used to compare the means of two groups or the mean of one group with a known value, under the assumption of normally distributed data.

T Procedure

A statistical method used to test the mean of a population, especially useful when dealing with small sample sizes and unknown population standard deviations.

Outliers

Data points that significantly deviate from the other observations in a dataset, potentially indicating measurement error or an unusual event.