TABLE 10-15
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.
Sample I (public accounting): ₁ = 60.35, S₁ = 3.25, n₁ = 12
Sample II (financial planning): ₂ = 58.20, S₂ = 2.48, n₂ = 14
Test whether the mean starting annual salaries for individuals entering the public accounting professions is higher than that of financial planning assuming that the two population variances are the same.
-Referring to Table 10-15, suppose α = 0.01. Which of the following represents the correct conclusion?
A) There is not enough evidence that the mean starting annual salaries for individuals entering the public accounting professions is not higher than that of financial planning.
B) There is not enough evidence that the mean starting annual salaries for individuals exsting the public accounting professions is not higher than that of financial planning.
C) There is not enough evidence that the mean starting annual salaries for individuals entering the public accounting professions is higher than that of financial planning.
D) There is enough evidence that the mean starting annual salaries for individuals entering the public accounting professions is higher than that of financial planning.

Question

TABLE 10-15
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.
Sample I (public accounting):  ₁ = 60.35, S₁ = 3.25, n₁ = 12
Sample II (financial planning):  ₂ = 58.20, S₂ = 2.48, n₂ = 14
Test whether the mean starting annual salaries for individuals entering the public accounting professions is higher than that of financial planning assuming that the two population variances are the same.
-Referring to Table 10-15, suppose α = 0.01. Which of the following represents the correct conclusion?
A) There is not enough evidence that the mean starting annual salaries for individuals entering the public accounting professions is not higher than that of financial planning. 
B) There is not enough evidence that the mean starting annual salaries for individuals exsting the public accounting professions is not higher than that of financial planning. 
C) There is not enough evidence that the mean starting annual salaries for individuals entering the public accounting professions is higher than that of financial planning. 
D) There is enough evidence that the mean starting annual salaries for individuals entering the public accounting professions is higher than that of financial planning.

Quizplus · Accepted Answer

We need to perform a two-sample t-test with equal variances. With a 0.01 significance level and 22 degrees of freedom (n1 + n2 - 2), the critical value is ±2.518. The t-statistic is calculated as:

t = ((60.35 - 58.20) - 0) / sqrt[(3.25^2/12) + (2.48^2/14)] = 2.09

Since the t-statistic (2.09) is greater than the critical value (±2.518), we reject the null hypothesis and conclude that there is enough evidence that the mean starting annual salaries for individuals entering the public accounting professions is higher than that of financial planning. Therefore, the correct answer is D.

TABLE 10-15 The Table Below Presents the Summary Statistics for the Starting