TABLE 10-2 A Researcher Randomly Sampled 30 Graduates of an MBA Program

question 161

Multiple Choice

TABLE 10-2
A researcher randomly sampled 30 graduates of an MBA program and recorded data concerning their starting salaries. Of primary interest to the researcher was the effect of gender on starting salaries. The result of the pooled-variance t test of the mean salaries of the females (Population 1) and males (Population 2) in the sample is given below.

-Referring to Table 10-2, the researcher was attempting to show statistically that the female MBA graduates have a significantly lower mean starting salary than the male MBA graduates. What assumptions were necessary to conduct this hypothesis test?

• A) Both populations of salaries (male and female) must have approximate normal distributions.
• B) The population variances are approximately equal.
• C) The samples were randomly and independently selected.
• D) All of the above assumptions were necessary.

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Definitions:

Perfectly Elastic

Describing a situation where the quantity demanded or supplied responds infinitely or by an unlimited amount to a change in price.

Horizontal Line

A straight line on a graph that runs parallel to the x-axis, indicating a constant value.

Price Elasticity

A measure of how much the quantity demanded of a good responds to a change in its price, indicating the sensitivity of consumers to price changes.

Perfectly Elastic

Describes a situation in economics where the quantity demanded or supplied responds infinitely or extremely to a change in price.