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

Question

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

Quizplus · Accepted Answer

Using the critical value approach and an α level of 0.05, the calculated test statistic (Mann-Whitney U) is less than the critical value. Therefore, we fail to reject the null hypothesis and cannot conclude that the median taxes paid in the city differs from the median taxes paid in the county.

An Accountant Wants to Know If the Property Taxes Paid