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

question 119

Short Answer

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, state the null and alternative hypotheses for testing whether there is evidence of a difference in the variances of the starting annual salaries. a) $H _ { 0 } : \sigma _ { 1 } ^ { 2 } - \sigma _ { 2 } ^ { 2 } \geq 0$ versus $H _ { 1 } : \sigma _ { 1 } ^ { 2 } - \sigma _ { 2 } ^ { 2 } < 0$
b) $H _ { 0 } : \sigma _ { 1 } ^ { 2 } - \sigma _ { 2 } ^ { 2 } \leq 0$ versus $H _ { 1 } : \sigma _ { 1 } ^ { 2 } - \sigma _ { 2 } ^ { 2 } > 0$
c) $H _ { 0 } : \sigma _ { 1 } ^ { 2 } - \sigma _ { 2 } ^ { 2 } = 0$ versus $H _ { 1 } : \sigma _ { 1 } ^ { 2 } - \sigma _ { 2 } ^ { 2 } \neq 0$
d) $H _ { 0 } : \sigma _ { 1 } ^ { 2 } - \sigma _ { 2 } ^ { 2 } \neq 0$ versus $H _ { 1 } : \sigma _ { 1 } ^ { 2 } - \sigma _ { 2 } ^ { 2 } = 0$