Salary Data Were Collected from CEOs in the Consumer Products $\text { HYPOTHESIS: MEAN X = MEAN Y }$

question 15

Multiple Choice

Salary data were collected from CEOs in the consumer products industry and CEOs in the telecommunication industry. The data were analyzed using a software package in order to compare mean salaries of CEOs in the two industries.

$\text { HYPOTHESIS: MEAN X = MEAN Y }$

$\text { SAMPLES SELECTED FROM SALARY }$

$\begin{array}{rc}&\text { \( X= \) Consumer Products}\\&\text { \( \mathrm{Y}= \) Telecommunications}\\\\\text { SAMPLE MEAN OF } X= & 1761 \\\text { SAMPLE VARIANCE OF X }= & 3.97555 \text { E } 6 \\\text { SAMPLE SIZE OF X }= & 21 \\\text { SAMPLE MEAN OF Y }= & 1093.5 \\\text { SAMPLE VARIANCE OF Y }= & 103255 \\\text { SAMPLE SIZE OF Y }= & 21\\\\\text { MEAN X - MEAN Y }= & 667.5 \\\text { test statistic }= & 1.47809 \\\text { D. F. }= & 40 \\\text { P-VALUE }= & 0.147626 \\\text { P-VALUE/2 }= & 0.0738131 \\\text { SD.ERROR }= & 451.597 \end{array}$

What of the following assumptions is necessary to perform the test described above?

• A) The means of the two populations of salaries are equal.
• B) The population of salaries for each of the two industries has an approximately normal distribution.
• C) The standard deviations of the two populations of salaries are both large.
• D) None. The Central Limit Theorem takes care of all assumptions

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Definitions:

FIFO Method

"First In, First Out," an inventory valuation method that assumes goods are sold in the order they are acquired.

Inventory Costing

The method used to value inventory, including techniques like FIFO (First In, First Out), LIFO (Last In, First Out), and weighted average cost.

FIFO Method

"First In, First Out" method of inventory valuation where the oldest inventory items are recorded as sold first.