The information below presents the summary statist... Bookmark The information b
ID: 3178809 • Letter: T
Question
The information below presents the summary statist... Bookmark The information below presents the summary statistics for the starting annual salaries (in thousands of dollars) for individuals entering the public accounting and financial planning professions.
Sample I (public accounting): mean = 60.35, standard deviation = 3.25, sample size = 12
Sample II (financial planning): mean = 58.20, standard deviation = 2.48, sample size = 14
Referring to Scenario 10-15, suppose a = 0.05. Which of the following represents the result of the test on a difference in the variances?
A) Insufficient information exists on which to make a decision.
B)The null hypothesis is rejected.
C) The null hypothesis is not rejected.
D) The alternative hypothesis is rejected.
Explanation / Answer
Given that,
mean(x)=60.35
standard deviation , s.d1=3.25
number(n1)=12
y(mean)=58.2
standard deviation, s.d2 =2.48
number(n2)=14
null, Ho: u1 = u2
alternate, H1: u1 != u2
level of significance, = 0.05
from standard normal table, two tailed t /2 =2.201
since our test is two-tailed
reject Ho, if to < -2.201 OR if to > 2.201
we use test statistic (t) = (x-y)/sqrt(s.d1^2/n1)+(s.d2^2/n2)
to =60.35-58.2/sqrt((10.5625/12)+(6.1504/14))
to =1.872
| to | =1.872
critical value
the value of |t | with min (n1-1, n2-1) i.e 11 d.f is 2.201
we got |to| = 1.87167 & | t | = 2.201
make decision
hence value of |to | < | t | and here we do not reject Ho
p-value: two tailed ( double the one tail ) - Ha : ( p != 1.8717 ) = 0.088
hence value of p0.05 < 0.088,here we do not reject Ho
ANSWERS
---------------
null, Ho: u1 = u2
alternate, H1: u1 != u2
test statistic: 1.872
critical value: -2.201 , 2.201
decision: do not reject Ho
p-value: 0.088
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