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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