Recent evidence suggests that graduating from college during bad economic times can impact the graduate's earning power for a long time (Financial Times, June 1, 2012). An associate dean at a prestigious college wants to determine if the starting salary of his college graduates has declined from 2008 to 2010. He expects the variance of the salaries to be different between these two years.
A portion of the data is shown in the accompanying table.
Salary 2008 ($) Salary 2010 ($)
35,000.................................34,000
56,000.................................62,000
⋮................................................⋮
47,000.................................54,000
Use the p-value approach, at the 5% significance level, to determine if the mean starting salary has decreased from 2008 to 2010. Describe your steps clearly.