1. The annual earnings of 25 people with a high school diploma and 16 people with an associate degree are shown below. Can you conclude that there is a difference in the mean annual earnings based on level of education? Assume that population are normally distributed and population variances are not equal.

a) Identify the claim and state the null and alternative hypothesis. (3p) b) What type of statistical test should be used to answer the researchers question? (Note: Is this a z-test or a t-test? One sample, dependent sample or independent sample) (2p) c) Find the standardized test statistic and corresponding critical value(s). (5p) d) At 0.05 significance level, decide whether to reject or fail to reject the null hypothesis. (2p) e) Interpret the decision in the context of the original claim. (3p)

T = = High school diploma X1 = $36,8752 S1 = $54754 nu = 252 Associate degree X2 = $44,900 S2 = $85802 n2 = 16 = 1 1 1 =