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A Student Has to Decide Whether He Wants to Major

question 36

Essay

A student has to decide whether he wants to major in electrical engineering or computer science. To find out which job pays more, he interviews eight alumni in each profession and asks them what their starting salary was. The electrical engineering alumni had a mean starting salary of $54,000 and a standard deviation of $8,000. The computer science alumni had a mean starting salary of $62,000 and a standard deviation of $10,000. It is reasonable to assume equal population variances, and assume starting salaries are normally distributed.
A) Specify the competing hypotheses to determine if electrical engineering and computer science majors mean starting salaries are equal.
B) Calculate the value of the test statistic and find the critical value at a 5% significance level.
C) Make a conclusion at the 5% significance level.

Definitions:

Cost Centre

A segment of an organization where costs can be identified and attributed directly, but which does not directly generate revenue.

Division's Performance

Evaluation of a specific division's effectiveness in achieving its business goals and objectives, often measured against pre-set benchmarks.

Manager Responsibility

The duties and obligations assigned to managers, including decision making, leadership, and overseeing operations and employees.

Shared Service Units

Organizational entities created within a firm to provide specialized support functions centrally to various business units or departments, enhancing efficiency and reducing costs.