A Random Sample of 30 Executives from Companies with Assets

question 53

Multiple Choice

A random sample of 30 executives from companies with assets over $1 million was selected and asked for their annual income and level of education. The ANOVA comparing the average income among three levels of education rejected the null hypothesis. The Mean Square Error (MSE) was 243.7. The following table summarized the results: When comparing the mean annual incomes for executives with a High School education or less and Undergraduate Degree, the 95% confidence interval shows an interval of 11.7 to 42.7 for the difference. This result indicates that:

• A) there is no significant difference between the two incomes.
• B) the interval contains a difference of zero.
• C) executives with an Undergraduate Degree earn significantly more than executives with a High School education or less.
• D) executives with an Undergraduate Degree earn significantly less than executives with a High School education or less.

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Definitions:

Credit Terms

The conditions under which credit will be extended to a borrower, including repayment periods and interest rates.

Net 45

A payment term indicating that payment is due 45 days from the invoice date.