Two Different Firms Design Their Own Tests for Business Graduates

question 84

Short Answer

Two different firms design their own tests for business graduates, and an employer administers both versions to a random selection of prospective employees. Results are below.
At α = .02, test the claim that both versions produce the same score.
Mean difference = −4.25
Standard error of the difference = 1.411

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Definitions:

Quarterly Dividend

A dividend payment made by a company to its shareholders every three months, representing a portion of the earnings.

Compounded Quarterly

A method of calculating interest where the interest earned on an investment is calculated four times a year and added to the principal sum, leading to interest calculations on interest in subsequent periods.

Future Value Factor

A formula used to determine the future value of an investment based on its current value and rate of return.

Annuity

A fiscal instrument providing a constant flow of payments to a person, mainly serving as a source of income for individuals in retirement.