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

question 23

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 1 (public accounting) : 1 = 60.35, S1 = 3.25, n1 = 12
Sample 2 (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, state the null and alternative hypotheses for testing whether there is evidence of a difference in the variances of the starting annual salaries.

• A) H₀: σ₁² - σ₂² ≥ 0 versus H₁: σ₁² - σ₂² < 0
• B) H₀: σ₁² - σ₂² ≤ 0 versus H₁: σ₁² - σ₂² > 0
• C) H₀: σ₁² - σ₂² = 0 versus H₁: σ₁² - σ₂² ≠ 0
• D) H₀: σ₁² - σ₂² ≠ 0 versus H₁: σ₁² - σ₂² = 0

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Definitions:

IFRS

International Financial Reporting Standards, a set of accounting rules and standards that define how transactions and other accounting events should be reported in financial statements. They are designed to be globally consistent to enhance international comparability and quality of financial statements.

Cash Flow Reporting

A financial statement that shows how changes in balance sheet accounts and income affect cash and cash equivalents, breaking the analysis down to operating, investing, and financing activities.

Interest Paid

The amount paid over a period for the use of borrowed funds, typically expressed as an annual percentage of the loan amount.

Dividend

A portion of a company's earnings distributed to its shareholders as determined by the company's board of directors.