SCENARIO 10-15
the Table Below Presents the Summary Statistics for the Starting

question 128

Multiple Choice

SCENARIO 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) : $\bar { X } _ { 1 } = 60.35 , S _ { 1 } = 3.25 , n _ { 1 } = 12$
Sample II (financial planning) : $\bar { X } _ { 2 } = 58.20 , S _ { 2 } = 2.48 , n _ { 2 } = 14$ 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 Scenario 10-15, suppose $\alpha$ = 0.05.Which of the following represents the result of the test on a difference in the variances?

• A)The alternative hypothesis is rejected.
• B)The null hypothesis is rejected.
• C)The null hypothesis is not rejected.
• D)Insufficient information exists on which to decide.

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Definitions:

Noncontrolling Interest

A minority shareholding in a company where the shareholder does not have the majority of voting rights.

Acquisition-Date Fair Value

The value of an asset or liability at the time of acquisition, determined according to applicable accounting standards for fair value measurement.

Controlling Interest

Ownership of a sufficient portion of a company's stock to dictate policies and make management decisions, typically over fifty percent.

Noncontrolling Interest

A portion of the equity in a subsidiary not directly owned by the parent company, reflecting the minority shareholders' interest in the subsidiary.