An Accountant Wants to Know If the Property Taxes Paid

question 93

Multiple Choice

An accountant wants to know if the property taxes paid by clients who live in the city are different from those who live in the county.The property taxes paid by five clients from the city (sample 1) and five clients from the county (sample 2) are shown below. Using the critical value approach and α = 0.05,the appropriate conclusion is ___________.

• A) reject the null hypothesis;we 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;we cannot conclude the median taxes paid in the city differs from the median taxes paid in the county

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Definitions:

Monopolistically Competitive

An economic scenario in which numerous companies offer products that are alike but not exactly the same, facilitating rivalry through distinctions in their products.

Excess Capacity

A situation in which a firm or industry has more resources available, particularly production capabilities, than is being utilized due to insufficient demand.

Monopolistic Competition

A market structure characterized by many sellers selling products that are similar but not identical, allowing for limited control over market prices.

Excess Capacity

A situation where a company can produce more goods or services than currently demanded, often leading to inefficiencies and lowered prices.