Exhibit 18-6
It is believed that the median yearly income in a suburb of Atlanta is $70,000. A sample of 67 residents was taken. Thirty-eight had yearly incomes above $70,000, 26 had yearly incomes below $70,000, and 3 had yearly incomes equal to $70,000. The null hypothesis to be tested is H 0 : median = $70,000.
-Refer to Exhibit 18-6. To test the null hypothesis, the appropriate probability distribution to use is
A)normal
B)chi-square
C)t distribution
D)binomial

Question

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The Answer of Exhibit 18-6
It is believed that the median yearly income in a suburb of Atlanta is $70,000. A sample of 67 residents was taken. Thirty-eight had yearly incomes above $70,000, 26 had yearly incomes below $70,000, and 3 had yearly incomes equal to $70,000. The null hypothesis to be tested is H 0 : median = $70,000.
-Refer to Exhibit 18-6. To test the null hypothesis, the appropriate probability distribution to use is
A)normal
B)chi-square
C)t distribution
D)binomial

Exhibit 18-6 It Is Believed That the Median Yearly Income in a in a Suburb