In Order to Estimate the Difference Between the Average Yearly

question 46

Short Answer

In order to estimate the difference between the average yearly salaries of top managers in private and governmental organizations, the following information was gathered.
$\begin{array}{lcc}&\text { Private }&\text { Governmenta }\\\text { Sample Size } & 50 & 60 \\\text { Sample Mean in } \$ 1,000 s) & 90 & 80 \\\text { Sample Standard Deviation in } \$ 1,000 s) & 6 & 8\end{array}$ Develop an interval estimate for the difference between the average salaries of the two sectors. Let α = .05.

---

Definitions:

Controllable Costs

Expenses that a manager or a business can influence or regulate in the short term, such as supplies, utilities, and wages.

Profit Center

A segment of a business responsible for both its revenue and expenses, allowing for assessment of its profitability.

Generates Revenue

The process of creating income for a company through activities such as sales of goods, provision of services, or other business operations.

Investing Decisions

Choices made by individuals or companies regarding where to allocate resources, often considering the potential for profits or losses, to achieve financial growth.