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

question 156

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,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 : - ≥ 0 versus H₁ : - < 0
• B)H₀ : - ≤ 0 versus H₁ : - > 0
• C)H₀ : - = 0 versus H₁ : - ≠ 0
• D)H₀ : - ≠ 0 versus H₁ : - = 0

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Definitions:

Income Taxes

Taxes levied by the government on income generated by businesses and individuals within their jurisdiction.

Units-Of-Output

A depreciation method where the expense is based on the number of units produced or the machine hours used during the period.

Match of Expenses

The accounting principle of recognizing expenses in the same period as the revenues they helped to generate.

Revising Depreciation Estimates

Adjusting the period or method used for depreciating a fixed asset due to changes in its expected useful life or salvage value.