TABLE 10-2 A Researcher Randomly Sampled 30 Graduates of an MBA Program

question 161

Multiple Choice

TABLE 10-2
A researcher randomly sampled 30 graduates of an MBA program and recorded data concerning their starting salaries. Of primary interest to the researcher was the effect of gender on starting salaries. The result of the pooled-variance t test of the mean salaries of the females (Population 1) and males (Population 2) in the sample is given below.

-Referring to Table 10-2, the researcher was attempting to show statistically that the female MBA graduates have a significantly lower mean starting salary than the male MBA graduates. What assumptions were necessary to conduct this hypothesis test?

• A) Both populations of salaries (male and female) must have approximate normal distributions.
• B) The population variances are approximately equal.
• C) The samples were randomly and independently selected.
• D) All of the above assumptions were necessary.

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Definitions:

Crude Quantity Theory

A basic economic theory suggesting that the amount of money in supply directly affects the price level and inflation in an economy.

Sophisticated Quantity Theory

An advanced approach to Quantity Theory of Money, considering complex factors influencing money supply and demand.

Deflation

A decline in the price level for at least two years.

Keynesians

Economists and thinkers following the theories of John Maynard Keynes, who advocate for active government intervention in the economy to manage demand and avoid economic recessions.