Question

We are interested in determining whether or not the mean of the starting salaries of accounting majors is significantly different from management majors. The following information was gathered from two samples. 3. Accounting 21 Management 18 Sample Size Average Monthly Income Standard Deviation $3,600 $3,500 $900 $400 Test the quality of means at 5% level of significance We assume the population variances are equal. Test the equality of variances of the populations at 5% level of significance. a. b.

Answer 1

a)

H0: The mean of the starting salaries of accounting majors is not significantly different from management majors.
H1: The mean of the starting salaries of accounting majors is significantly different from management majors.

Let the los be alpha = 5%

Test Staisic under H. X1- A2 SE(n -x2) 1- X2 3600-35004590 9002 4002 02.418. 900 400 21 18 = 28.4996 1 900 21-1 21 1 (4002 一) ' 18-1 18

Critical t: ±2.046789
P-Value: 0.6497
Here t value is in t critical values and P-value > alpha 0.05 so we accept H0

Thus we conclude that the mean of the starting salaries of accounting majors is not significantly different from management majors.

b)

H0: The two population variances are equal

H1: The two population variances are not equal

Let the los be alpha = 5%

Lower Critical F: 0.3963869
Upper Critical F: 2.615797
P-Value: 0.0014
Here F value is not in F critical values and P-value < alpha 0.05 so we reject H0

Thus we conclude that the two population variances are not equal