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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:

Generating Revenues

Generating revenues involves engaging in activities that bring income to a business, such as selling goods or providing services.

Cost

The total amount of money spent on the production, acquisition, or maintenance of goods and services.

Direct Labor Cost

The total expense that a company incurs for employees who directly work on manufacturing products or performing services, including wages, benefits, and payroll taxes.

Automotive Repair Shop

A business establishment dedicated to repairing and maintaining vehicles, including cars and trucks.