A Researcher Believes That the Median Lowest Temperature for February

question 12

Multiple Choice

A researcher believes that the median lowest temperature for February is 30 degrees Fahrenheit. A random sample of 14 years yields the following lowest temperatures for February, in degrees Fahrenheit:
15 15 17 19 19 21 22 24 25 27 30 32 36 38
Test the researcher's hypothesis at α = 0.05.
You may use the following abbreviated table of critical values (two tailed, = .05) taken from Table J:

• A) Reject the claim because the test value 4 is more than the critical value 3.
• B) Do not reject the claim because the test value 3 is equal to the critical value 3.
• C) Reject the claim because the test value 4 is more than the critical value 2.
• D) Do not reject the claim because the test value 3 is more than the critical value 2.

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Definitions:

Allowance for Doubtful Accounts

An accounting provision made by companies to account for potential future bad debts, reflecting credit sales that might not be collected.

Write Off

The accounting action of declaring that an asset is no longer useful and recording its depreciation in the financial statements.

Expense Recognition Principle

An accounting principle that matches expenses with the revenues they helped to generate, recognizing expenses in the same period as the revenues.

Direct Write-off Method

An accounting method where uncollectible accounts receivable are directly removed from the accounts when deemed irrecoverable.