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.

---

Definitions:

Strategy Selection

The process of deciding on a specific course of action or plan to address a particular problem or to achieve a desired goal.

Competitive Advantage

Refers to the unique edge a business has over its competitors, allowing it to generate greater sales or margins and/or retain more customers.

Strategic Management Process

A comprehensive approach to planning, executing, monitoring, and adapting strategies that guide an organization in maintaining competitive advantage.

Strategy

A comprehensive plan guiding resource allocation to achieve long-term organization goals.