Do Undergraduate Business Students Who Major in Information Systems (IS)

question 6

Essay

Do undergraduate business students who major in information systems (IS) earn, on average, higher annual starting salaries than their peers who major in marketing (Mktg)? To address this question with a statistical hypothesis test, a comparison should be done to determine whether the variances of annual starting salaries of the two types of majors are equal. Below you will find output from a test of 20 randomly selected IS majors and 20 randomly selected Mktg majors.
-(A) Use the information above to perform the test of equal variance. Explain how the ratio of sample variances is calculated. What type of distribution is used to test for equal variances? Also, would you conclude that the variances are equal or not? Explain.
​
(B) Based on your conclusion in (A), which test statistic should be used in performing a test for the existence of a difference between population means?
​
(C) Using a 5% level of significance, is there sufficient evidence to conclude that IS majors earn, on average, a higher annual starting salaries than their peers who major in Mktg?
​
(D) Using a 1% level of significance, is there sufficient evidence to conclude that IS majors earn, on average, a higher annual starting salaries than their peers who major in Mktg? Explain your answer.

Understand the effects of real interest rate changes on investment and consumption decisions.

Understand the concept of interest and different perspectives surrounding it.

Learn how the net present value is influenced by the interest rate.

Comprehend the impact of interest rates on consumer behavior and purchasing decisions.

---

Definitions:

Movie Effect

The influence that watching movies or other multimedia content can have on a person's emotions, behavior, attitudes, or perceptions.

Eardrum Vibration

The movement of the eardrum in response to sound waves, crucial for the hearing process.

Sound Wave

A type of wave that is an oscillation of pressure transmitted through a solid, liquid, or gas, composed of frequencies within the range of hearing and capable of producing a sound sensation.

Pressure Wave

A type of wave in which the oscillations occur in the direction of propagation, often found in sound waves.