A Researcher Randomly Sampled 30 Graduates, 18 Males and 12

question 38

Multiple Choice

A researcher randomly sampled 30 graduates, 18 males and 12 females, 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. Statistics of the mean salaries of the females and males in the sample were computed. The sample standard deviations suggest that the variability of starting salaries of the two groups is almost the same. Suppose the starting salaries from both groups can be considered as normally distributed. Which of the following tests will be the most appropriate?

• A) pooled-variance t test
• B) separate-variance t test
• C) paired t test
• D) Wilcoxon rank sum test

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Definitions:

Cash Provided

The liquidity generated by a company's operations, which may include cash from revenue as well as financing and investing activities.

Financing Activities

Activities that result in changes in the size and composition of the equity capital and borrowings of an entity.

Direct Method

A way of presenting a cash flow statement where actual cash flows from operating activities are disclosed, as opposed to estimating them indirectly through differences in non-cash items.

Cash Flows

The aggregate sum of cash inflows and outflows in a business, significantly impacting its ability to meet short-term obligations.