A Sports Agent Wants to Understand the Differences in the Annual

question 86

Multiple Choice

A sports agent wants to understand the differences in the annual earnings of players in different sports. The following table shows the annual earnings (in million $) of 52 athletes. For the Kruskal-Wallis test, the rank sums for each group are at the bottom of the table. Using the critical value approach and α = 0.01, the appropriate conclusion is ________.

• A) do not reject the null hypothesis; we cannot conclude not all median annual earnings are equal
• B) reject the null hypothesis; we can conclude not all median annual earnings are equal
• C) reject the null hypothesis; we cannot conclude not all median annual earnings are the equal
• D) do not reject the null hypothesis; we can conclude that not all median annual earnings are equal

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Definitions:

Permanent Account

A balance sheet account that carries its ending balance over to the next accounting period, such as assets, liabilities, and equity accounts.

Accounting Cycle

The process of recording and processing all financial transactions of a company, from the time the transaction occurs, to its representation on financial statements.

Adjusted Trial Balance

A list of all the accounts and their balances after adjusting entries are made, used to prepare financial statements.

Adjustment Columns

Columns in financial statements or ledgers used to make necessary adjustments for accrual accounting, such as for accrued expenses or revenues.