Exhibit 18-6 It Is Believed That the Median Yearly Income in a in a Suburb

question 61

Multiple Choice

Exhibit 18-6
It is believed that the median yearly income in a suburb of Atlanta is $70,000. A sample of 67 residents was taken. Thirty-eight had yearly incomes above $70,000, 26 had yearly incomes below $70,000, and 3 had yearly incomes equal to $70,000. The null hypothesis to be tested is H₀: median = $70,000.
-Refer to Exhibit 18-6. The mean and the standard deviation (respectively) for this test about the median are

• A)32 and 4
• B)32 and 16
• C)33.5 and 4
• D)33.5 and 16

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Definitions:

Government Subsides

Financial assistance provided by the government to individuals, organizations, or businesses in order to promote certain activities or reduce the costs of those activities.

Economic Growth

An increase in the production of goods and services in an economy over a period, typically measured as the percent change in GDP.

Economic Growth

An increase in the production of goods and services in an economy over a period of time, usually measured by GDP.

Saving

Refers to the portion of income that is not spent on consumption but rather put aside for future use, often in a deposit account or as an investment.