SCENARIO 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. 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 Scenario 10-15, suppose = 0.01.Which of the following represents the result of the relevant hypothesis test?
A)The alternative hypothesis is rejected.
B)The null hypothesis is rejected.
C)The null hypothesis is not rejected.
D)Insufficient information exists on which to decide.

Question

SCENARIO 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.  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 Scenario 10-15, suppose  = 0.01.Which of the following represents the result of the relevant hypothesis test?
A)The alternative hypothesis is rejected. 
B)The null hypothesis is rejected. 
C)The null hypothesis is not rejected. 
D)Insufficient information exists on which to decide.

Quizplus · Accepted Answer

Since the p-value is 0.01 which is less than the significance level of 0.05, we reject the null hypothesis and conclude that the mean starting annual salary for individuals entering the public accounting professions is higher than that of financial planning. Therefore, the null hypothesis is rejected. With a significance level (α) of 0.01 and the null hypothesis that the mean starting annual salaries for individuals entering the public accounting professions is equal to that of financial planning, the null hypothesis is not rejected if the calculated p-value is greater than or equal to α.

SCENARIO 10-15 the Table Below Presents the Summary Statistics for the Starting