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. The test statistic has a value of
A)1.00
B)1.50
C)2.00
D)2.50

Question

Quizplus · Accepted Answer

The test statistic is calculated as (38 - 26) / sqrt(67 * 0.5 * 0.5) = 1.50.

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