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A career counselor is interested in examining the salaries earned by graduate bu

ID: 3313309 • Letter: A

Question

A career counselor is interested in examining the salaries earned by graduate business school students at the end of the first year after graduation. In particular, the counselor is interested in seeing whether there is a difference between men and women graduates' salaries. From a random sample of 20 men, the mean salary is found to be $42,780 with a standard deviation of $5,426. From a sample of 12 women, the mean salary is found to be $40,136 with a standard deviation of $4,383. Assume that the random sample observations are from normally distributed populations, and that the population variances are assumed to be equal.


What is the upper confidence limit of the 95% confidence interval for the difference between the population mean salary for men and women

Explanation / Answer

The statistical software output for this problem is:

Two sample T summary confidence interval:
1 : Mean of Population 1
2 : Mean of Population 2
1 - 2 : Difference between two means
(with pooled variances)

95% confidence interval results:

Hence,

Upper confidence limit = 6423.7814 [Rounded off to 4 decimal places; Please round it off as per the question]

Difference Sample Diff. Std. Err. DF L. Limit U. Limit 1 - 2 2644 1850.7724 30 -1135.7814 6423.7814
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