THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION

question 11

Multiple Choice

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
A career counselor is interested in examining the salaries earned by graduate business school students at the end of the first year after graduation.In particular,the counselor is interested in seeing whether there is a difference between men and women graduates' salaries.From a random sample of 20 men,the mean salary is found to be $42,780 with a standard deviation of $5,426.From a sample of 12 women,the mean salary is found to be $40,136 with a standard deviation of $4,383.Assume that the random sample observations are from normally distributed populations,and that the population variances are assumed to be equal.
-What is the upper confidence limit of the 95% confidence interval for the difference between the population mean salary for men and women?

• A)$6,122.835
• B)$6,240.833
• C)$6,079.79
• D)$6,423.781

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Definitions:

Externalities

Economic side effects or consequences of commercial activities that affect other parties without being reflected in the cost of the goods or services involved.

Adverse Selection

A situation in markets where buyers and sellers have different information, leading to transactions where one party may be disadvantaged.

Insurance Payouts

Refers to the money that insurance companies pay to policyholders or beneficiaries when a claim is made and approved under the terms of an insurance policy.