The table below presents the summary statistics for the starting annual salaries

Question

The table below presents the summary statistics for the starting annual salaries (in thousands of dollars) for individuals entering the public accounting and financial planning professions. Test whether the mean starting annual salaries for individuals entering the public accounting is higher than that of financial planning assuming that the pre population variances are the same. Suppose alpha = 0.05. Which of the following represents the correct consultation? The mull hypotheses is rejected. The null hypothesis is not rejected. Insufficient information exists on which to make a diction. The alternative hypothesis in rejected?

Explanation / Answer

The statistical software output for this problem is:

Two sample T hypothesis test:
1 : Mean of Population 1
2 : Mean of Population 2
1 - 2 : Difference between two means
H0 : 1 - 2 = 0
HA : 1 - 2 > 0
(without pooled variances)

Hypothesis test results:

Since p - value is greater than alpha, do not reject Ho.

Option B is correct.

Difference Sample Diff. Std. Err. DF T-Stat P-value 1 - 2 0.8 1.1487048 20.41692 0.69643657 0.247

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