Question
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
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.
Let Sample 1 be the sample of the starting salary of college graduates in 2008 and Sample 2 be the sample of the starting salary of college graduates in 2010.
a.Specify the competing hypotheses that determine whether the starting salary of college graduates has declined from 2008 to 2010.
multiple choice 1
- H0:12= 0;HA:12 0
- H0:12 0;HA:12< 0
- H0:12 0;HA:12> 0
b.Find thep-value.
multiple choice 2
- p-value0.10
- 0.05p-value < 0.10
- 0.025p-value < 0.05
- 0.01p-value < 0.025
- p-value < 0.01
c.At the 5% significance level, have salaries gone down from 2008 to 2010?
multiple choice 3
- RejectH0; there is evidence that the average starting salary of college graduates has declined from 2008 to 2010.
- RejectH0; there is not sufficient evidence that the average starting salary of college graduates has declined from 2008 to 2010.
- Do not rejectH0; there is evidence that the average starting salary of college graduates has declined from 2008 to 2010.
- Do not rejectH0; there is not sufficient evidence that the average starting salary of college graduates has declined from 2008 to 2010.
Salary 2008
32000
54000
52000
55000
50000
49000
63000
47000
48000
43000
61000
49000
37000
46000
42000
43000
56000
37000
58000
55000
43000
46000
39000
47000
55000
35000
25000
52000
50000
38000
61000
41000
54000
47000
55000
66000
51000
69000
47000
45000
Salary 2010
33000
65000
36000
48000
71000
38000
40000
65000
71000
44000
64000
21000
29000
53000
58000
6000
37000
63000
49000
32000
51000
37000
48000
62000
65000
48000
62000
45000
64000
42000
42000
43000
31000
47000
56000
18000
48000
45000
55000
48000
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