Optional Review

Question 3

Suppose a certain state university's college of business obtained the following results on the salaries of a recent graduating class:

Finance MajorsBusiness Analytics Majors

n₁=120

n₂= 30

xbar₁= $48,437

xbar₂= $55,217

s₁= $19,000

s₂= $10,000

(a)

Formulate hypotheses so that, if the null hypothesis is rejected, we can conclude that salaries for Finance majors are significantly lower than the salaries of Business Analytics majors. Use= 0.05. (Let₁= the population mean salary for Finance majors, and let₂= the population mean salary for Business Analytics majors. Enter != foras needed.)

H₀:

H_a:

(b)

What is the value of the test statistic? (Use₁₂.

Round your answer to three decimal places.)

(c)

What is thep-value? (Round your answer to four decimal places.)

p-value =

(d)

What is your conclusion?

Do not rejectH₀. We can conclude that salaries for Finance majors are significantly lower than the salaries of Business Analytics majors.

RejectH₀. We cannot conclude that salaries for Finance majors are significantly lower than the salaries of Business Analytics majors.

RejectH₀. We can conclude that salaries for Finance majors are significantly lower than the salaries of Business Analytics majors.

Do not rejectH₀. We cannot conclude that salaries for Finance majors are significantly lower than the salaries of Business Analytics majors.