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

question 150

Multiple Choice

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, what additional assumption is needed for the test to be valid?

• A) The two sample sizes have to be equal.
• B) The two population sizes have to be equal.
• C) The two population means have to be the same.
• D) The population distributions of the two annual salaries have to be normal.

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Definitions:

Last Dollar Spent

A concept in consumer choice theory that refers to the allocation of the last unit of currency by a consumer to optimize utility.

q/L

A formula representing the productivity of labor, where 'q' is total output and 'L' is the total quantity of labor.

Average Product

The average product refers to the output per unit of input used, typically calculated by dividing the total output produced by the quantity of inputs.

Isoquant

A curve that represents all combinations of inputs that produce the same level of output in production theory.