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

question 200

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, suppose α = 0.01. 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:

Merit Bonuses

Compensation rewards given to employees based on their performance, as a way to incentivize higher productivity or achievement of certain goals.

Skill-Based Pay

A compensation system that bases employee pay on the skills and knowledge they possess, rather than their job position or title.

Sociotechnical System

An approach to complex organizational work design that recognizes the interaction between people and technology in workplaces.

Power Base

The source of authority or influence, often used in the context of organizations, politics, or social structures, that an individual, group, or entity possesses.