Asked by Karan Thakur on Jul 19, 2024
Verified
We are interested in determining whether or not the variances of the starting salaries of accounting majors is significantly different from management majors.The following information was gathered from two samples.
Accounting
Management
Sample Size
21
18
Average Monthly Income
$3600
$3500
Variance
$900
$400
At the .1 level of significance, test to determine whether or not the variances are equal.
Variances
Measures of the dispersion, indicating how spread out the data points are around the mean.
Accounting
The systematic process of recording, summarizing, analyzing, and reporting financial transactions of a business.
Management
The process of planning, organizing, leading, and controlling resources to achieve specific goals and objectives efficiently and effectively.
- Grasp the concepts of and apply hypothesis testing strategies for population variance and standard deviation.
- Differentiate the examination of variance equality from the inspection for precise variance/standard deviation values.
- Apply the critical value framework in the assessment of hypotheses regarding variance and standard deviation.
Verified Answer
H0:
= 
Ha: 
≠ 
F = 2.25 > 2.23; reject H0; p-value is between .05 and .1
Learning Objectives
- Grasp the concepts of and apply hypothesis testing strategies for population variance and standard deviation.
- Differentiate the examination of variance equality from the inspection for precise variance/standard deviation values.
- Apply the critical value framework in the assessment of hypotheses regarding variance and standard deviation.
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