Exhibit 20

question 10

Multiple Choice

Exhibit 20.5.An accountant wants to know if the property taxes paid by clients that live in the city are different from those that live in the county.The property taxes paid by five clients from the city (1) and five clients from the county (2) are shown below (in dollars) . Refer to Exhibit 20.5.Using the critical value approach,the appropriate conclusion is:

• A)Reject the null hypothesis,cannot conclude the median taxes paid in the city differs from the median taxes paid in the county
• B)Do not reject the null hypothesis,conclude the median taxes paid in the city differs from the median taxes paid in the county
• C)Reject the null hypothesis,conclude the median taxes paid in the city differs from the median taxes paid in the county
• D)Do not reject the null hypothesis,cannot conclude the median taxes paid in the city differs from the median taxes paid in the county

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Definitions:

Consumer Surplus

The disparity between the total sum consumers are ready to pay for a product or service and the actual amount they end up spending.

Producer Surplus

The difference between what producers are willing to accept for a good or service and the actual price they receive, reflecting extra benefit or profit.

Tax

Compulsory financial charge or some other type of levy imposed upon a taxpayer by a governmental organization in order to fund government spending and various public expenditures.

Deadweight Loss

The reduction in economic productivity resulting from a failure to reach or the impossibility of reaching the market equilibrium for a particular product or service.