Exhibit 20.8.A sports agent wants to understand the differences in the annual earnings of players in different sports.The below table shows the annual earnings (in million dollars)of 52 athletes.For the Kruskal-Wallis test,the rank sums for each group are at the bottom of the table. Refer to Exhibit 20.8.Using the critical value approach,the appropriate conclusion is:
A)Reject the null hypothesis,the annual earnings are not the same
B)Reject the null hypothesis,not all median annual earnings are the same
C)Reject the null hypothesis,all median annual earnings are the same
D)Reject the null hypothesis,cannot conclude all median annual earnings are not the same

Question

Exhibit 20.8.A sports agent wants to understand the differences in the annual earnings of players in different sports.The below table shows the annual earnings (in million dollars)of 52 athletes.For the Kruskal-Wallis test,the rank sums for each group are at the bottom of the table.  Refer to Exhibit 20.8.Using the critical value approach,the appropriate conclusion is:
A)Reject the null hypothesis,the annual earnings are not the same 
B)Reject the null hypothesis,not all median annual earnings are the same 
C)Reject the null hypothesis,all median annual earnings are the same 
D)Reject the null hypothesis,cannot conclude all median annual earnings are not the same

Quizplus · Accepted Answer

The Kruskal-Wallis test is used to determine if there is a significant difference in median scores between multiple groups. In this case, the null hypothesis is that all median annual earnings are the same. Using the critical value approach with a significance level of 0.05, we compare the calculated test statistic to the critical value of 7.815. The calculated test statistic is 17.660, which is greater than the critical value. Therefore, we reject the null hypothesis, and can conclude that not all median annual earnings are the same. This means that there is a significant difference in earnings between the different sports represented in the sample.