Five Years Ago,the Average Starting Salary of a New College $\alpha$

question 39

Multiple Choice

Five years ago,the average starting salary of a new college graduate with a major in marketing was $34,000.A random sample of 10 graduates from this year's graduating class of a local university yielded the following starting salaries in thousands of dollars: 28,36,25,37,35,24,38,45,39,and 36.The local university wants to determine if the median starting salary for marketing graduates has increased in the last five years. Assume that the population of starting salaries in marketing is not normally distributed.Using $\alpha$ = .05,can we conclude that the starting salaries increased in the last five years?

• A)Reject the null hypothesis
• B)Fail to reject the null hypothesis

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Definitions:

Absorption Costing

Absorption costing is a method of inventory costing in which all variable and fixed manufacturing costs are included in the cost of a unit of product, distinguishing it from variable costing.

Net Operating Income

The total profit of a business after all operating expenses are deducted from gross revenue, excluding taxes and interest payments.

Corporation

is a legal entity recognized by law as a separate entity from its owners, with its own rights and obligations.

Variable Costing

A costing method that includes only variable manufacturing costs in product costs and treats fixed manufacturing overhead as a period expense.