Data Was Collected from CEOs of Companies Within Both the Low-Tech

question 55

Multiple Choice

Data was collected from CEOs of companies within both the low-tech industry and the consumer products industry. The following printout compares the mean return-to-pay ratios between CEOs in the low-tech industry with CEOs in the consumer products industry.

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

$\text {SAMPLES SELECTED FROM RETURN}$
$\begin{array}{lll}\text { industry } 1 & \text { (low tech) } & \text { (NUMBER = 15) } \\\text { industry } 3 & \text { (consumer products) } & \text { (NUMBER = 15) }\end{array}$

$\begin{array}{rl}\text {X} =& \text {industry 1}\\\text { Y} =&\text {ndustry3}\\\\\text { SAMPLE MEAN OF X }=&157.286 \\\text { SAMPLE VARIANCE OF } X=&1563.45\\ \text { SAMPLE SIZE OF } X=&14 \\\text { SAMPLE MEAN OF } \mathrm{Y}=&217.583\\ \text { SAMPLE VARIANCE OF} Y=&1601.54 \\ \text { SAMPLE SIZE OF}Y=&12 \\\\\text { MEAN X - MEAN Y }=&-60.2976 \\\text {t}=&-4.23468 \\\mathrm{P}-\mathrm{VALUE}=&0.000290753 \\\text { P-VALUE } / 2=&0.000145377 \\\mathrm{SD}, \mathrm{ERROR}=&14.239 \\\end{array}$


Using the printout, which of the following assumptions is not necessary for the test to be valid?

• A) The population variances are equal.
• B) The samples were randomly and independently selected.
• C) The population means are equal.
• D) Both populations have approximately normal distributions.

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Definitions:

Optimistic Bias

The tendency to believe that we are less likely to experience negative events compared to others.

Anchoring

Anchoring refers to the cognitive bias where an individual relies too heavily on an initial piece of information (anchor) when making decisions.

Stereotyping Heuristic

A cognitive shortcut that involves making judgments about an individual based on generalized beliefs about the group to which they belong.

Availability Heuristic

A mental shortcut used when judging the frequency or probability of events based on how easily examples come to mind.