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:

Perfect Competitor

A theoretical market structure where many firms sell an identical product, entry and exit are easy, and no single firm can influence the market price.

Economic Loss

A loss in financial terms representing the difference between the market value and the cost of production.

Perfect Competitor

A market participant that cannot influence the market price and must take it as given because the market is perfectly competitive.

Short Run

A period in economic theory during which at least one input, such as plant size or the number of firms in the industry, is fixed and cannot be changed.