An Accountant Wants to Know If the Property Taxes Paid

question 65

Multiple Choice

An accountant wants to know if the property taxes paid by clients who live in the city are different from those who live in the country. The property taxes paid by five clients from the city (sample 1) and five clients from the country (sample 2) are shown below. Using the critical value approach and α = 0.05, the appropriate conclusion is ________.

• A) reject the null hypothesis; we cannot conclude the median taxes paid in the city differs from the median taxes paid in the country
• B) do not reject the null hypothesis; conclude the median taxes paid in the city differs from the median taxes paid in the country
• C) reject the null hypothesis; we can conclude the median taxes paid in the city differs from the median taxes paid in the country
• D) do not reject the null hypothesis; we cannot conclude the median taxes paid in the city differs from the median taxes paid in the country

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Definitions:

Perfectly Competitive Firm

A business that operates in a market where there are many buyers and sellers, all products are similar, and there are no barriers to entering or exiting the market.

Avocado Farmer

An individual or entity engaged in the cultivation and production of avocados, managing orchards and participating in the agricultural market.

Demand Curve

A graph showing the relationship between the price of a good and the quantity of that good that consumers are willing to purchase at various prices.

Competitive Market

A market structure characterized by a large number of buyers and sellers, where no single participant has significant market power to influence prices.