TABLE 10-15 The Table Below Presents the Summary Statistics for the Starting

question 150

Multiple Choice

TABLE 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) : ₁ = 60.35, S₁ = 3.25, n₁ = 12
Sample II (financial planning) : ₂ = 58.20, S₂ = 2.48, n₂ = 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 Table 10-15, what additional assumption is needed for the test to be valid?

• A) The two sample sizes have to be equal.
• B) The two population sizes have to be equal.
• C) The two population means have to be the same.
• D) The population distributions of the two annual salaries have to be normal.

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Definitions:

Net Domestic Product

The total value of all goods and services produced within a country's borders adjusted for depreciation.

Depreciation

The process of allocating the cost of a tangible or physical asset over its useful life, reflecting wear, tear, and obsolescence.

GDP Deflator

The GDP deflator is a measure of the level of prices of all new, domestically produced, final goods and services in an economy, acting as a gauge of inflation.

Real Per Capita GDP

The measure of a country's economic output that accounts for its number of people and adjusts for inflation, indicating the average economic well-being of its citizens.