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

question 178

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 correct conclusion for a test on a difference in the variances?

• A)There is no evidence of a difference in the variances.
• B)There is evidence of a difference in the variances.
• C)There is no evidence that the variances are the same.
• D)There is evidence that variances are the same.

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Definitions:

Unemployment Rate

The measure of individuals in the labor force who are without jobs but are actively trying to find employment.

Price Level

A measure of the average prices of goods and services in an economy, indicating the cost of living and inflation.

Price Expectations

The anticipations of consumers, businesses, and investors about future price levels, which can influence current economic decisions and behaviors.

Long-Run Aggregate Supply

The total supply of goods and services that a country's economy can produce over time when all inputs are fully utilized.