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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:

Small Business Administration

A U.S. government agency that provides support to entrepreneurs and small businesses, including loans, grants, and resource guides.

Internal Revenue Service

The U.S. federal agency responsible for the administration of tax laws and the collection of taxes, commonly referred to as the IRS.

Interstate Commerce

Commercial transactions or transportation of goods that cross state boundaries, regulated by federal authority in many countries.

Technological Controls

Systems and procedures implemented to secure technology infrastructure and manage information assets effectively.