This is a syntax issue, the jQuery library included with WordPress loads in "no conflict" mode. This is to prevent compatibility problems with other javascript libraries that WordPress can load. In "no-confict" mode, the $ shortcut is not available and the longer jQuery is used, i.e.
jQuery(document).ready(function ($) {
By including the $ in parenthesis after the function call you can then use this shortcut within the code block.
For full details see WordPress Codex