Refer to the Economics of Education Review (Vol. 21, 2002) study of the relationship between education level and earnings, Exercise 7.46 (p. 388). A National Adult Literacy Survey revealed that males with a postgraduate degree had a sample mean salary of $61,340 (with standard error sxM = $2,185), while females with a postgraduate degree had a sample mean salary of $32,227 (with standard error sxF = $932). Let mM represent the population mean salary of all males with postgraduate degrees and mF represent the population mean salary of all females with postgraduate degrees.
a. Set up the null and alternative hypotheses for determining whether µM exceeds µF.
b. Calculate the test statistic for the test, part a.
c. Find the rejection region for the test using α = .01.
d. Use the results, parts b and c, to make the appropriate conclusion.