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The test result is not sufficient to reject the null hypothesis. Using the standard nor- mal distribution, the null hypothesis could be rejected only at all significance levels of 12.3% or higher. Such a large p-value indicates that the data are not statistically signifi- cant to indicate that the ratio of market valuation to replacement cost of assets tends to be lower for firms without sophisticated postaudit procedures. Sign Test for a Single Population Median The sign test can also be used to test hypotheses about the central location (median) of a population distribution. Example 14.12 Starting Incomes of Recent College Graduates (Sign Test) The starting incomes of a random sample of 23 recent graduates are given in Table 14.16. Table 14.16 Starting Salaries y19 29,250 29,900 28,070 31,400 31,100 29,000 33,000 50,000 28,500 31,000 34,800 42,100 33,200 36,000 65,800 34,000 29,900 32,000 31,500 29,900 32,890 36,000 35,000 Do the data indicate that the median starting income differs from $35,000? The data for this problem can be found in the data file Income