A Management Consultant Wants to Compare the Incomes of Graduates

question 11

Essay

A management consultant wants to compare the incomes of graduates of MBA programs with those of graduates with Bachelor's degrees. In a random sample of the incomes of 20 people taken five years after they received their MBAs, the consultant found the mean salary and the standard deviation to be $45 300 and $9600, respectively. A random sample of the incomes of 25 people taken five years after they received their Bachelor's degrees yielded a mean salary of $43 600 with a standard deviation of $12 300. Can we infer at the 10% level of significance that the population means differ?

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Definitions:

Psychological Issue

Refers to mental or emotional conditions that impact an individual's thinking, feeling, mood, or behavior.

Low-Income

Referring to individuals or families that earn substantially less income than the average for their society or geographical area.

Admission-Free

Denotes situations or events where no fee is required to enter or participate.

Institutionalization

The process of establishing something as a norm or standard in an organizational or societal context.