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 1 (public accounting) : 1 = 60.35, S1 = 3.25, n1 = 12
Sample 2 (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, state the null and alternative hypotheses for testing whether there is evidence of a difference in the variances of the starting annual salaries.

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 1 (public accounting):  1 = 60.35, S1 = 3.25, n1 = 12
Sample 2 (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, state the null and alternative hypotheses for testing whether there is evidence of a difference in the variances of the starting annual salaries.
A) H₀: σ₁² - σ₂² ≥ 0 versus H₁: σ₁² - σ₂² < 0 
B) H₀: σ₁² - σ₂² ≤ 0 versus H₁: σ₁² - σ₂² > 0 
C) H₀: σ₁² - σ₂² = 0 versus H₁: σ₁² - σ₂² ≠ 0 
D) H₀: σ₁² - σ₂² ≠ 0 versus H₁: σ₁² - σ₂² = 0

Quizplus · Accepted Answer

The null hypothesis states that the difference in population variances is equal to zero, while the alternative hypothesis states that the difference is not equal to zero. This is the most common hypothesis test for testing equality of variances. Therefore, the correct choice is C.

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