Test Hypotheses Regarding the Difference of Two Independent Means

question 59

Short Answer

Test Hypotheses Regarding the Difference of Two Independent Means
-At a local store, 65 female employees were randomly selected and it was found that their mean monthly income was $617 with a standard deviation of $121.50. Seventy-five male employees were also randomly selected and their mean monthly income was found to be $659 with a standard deviation of $168.70. Test the hypothesis that male employees have a higher monthly income than female employees. Use = 0.01.

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Definitions:

Behavioral Economics

A field of economic research that examines the effects of psychological, cognitive, emotional, cultural, and social factors on economic decisions.

Rational

In economics, refers to individuals making decisions that will provide them with the greatest benefit or satisfaction given their limited resources.

Budget Constraints

The limitations on a consumer's ability to purchase goods and services based on their income and the prices of goods and services.

Preferences

Describes individuals' choices and priorities among different bundles of goods and services.