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

question 43

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 ? = 0.10. Which of the following represents the result of the relevant hypothesis test?

• 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 make a decision.

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Definitions:

Expected Opportunity Loss

The expected loss resulting from not choosing the best alternative action.

Perfect Information

A situation in decision making where all parties have full and equal knowledge of all relevant facts and outcomes.

Certainty

Absolute confidence in the accuracy or outcome of an event, often not attainable in statistical measurements.

Expected Profit

Expected profit is the anticipated financial gain from an investment or business activity, accounting for various factors such as costs and market conditions.