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

question 49

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) : $\bar{X}$ ₁ = 60.35, S₁ = 3.25, n₁ = 12
Sample II (financial planning) : $\bar{X}$ 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, state the null and alternative hypotheses for testing whether there is evidence of a difference in the variances of the starting annual salaries.

• A) \( H_{0}: \sigma_{1}^{2}-\sigma_{2}^{2} \geq 0 \) versus \( H_{1}: \sigma_{1}^{2}-\sigma_{2}^{2}<0 \)
• B) \( H_{0}: \sigma_{1}^{2}-\sigma_{2}^{2} \leq 0 \) versus \( H_{1}: \sigma_{1}^{2}-\sigma_{2}^{2}>0 \)
• C) \( H_{0}: \sigma_{1}^{2}-\sigma_{2}^{2}=0 \) versus \( H_{1}: \sigma_{1}^{2}-\sigma_{2}^{2} \neq 0 \)
• D) \( H_{0}: \sigma_{1}^{2}-\sigma_{2}^{2} \neq 0 \) versus \( H_{1}: \sigma_{1}^{2}-\sigma_{2}^{2}=0 \)