Do undergraduate business students who major in finance earn, on average, higher annual starting salaries than their
Question:
Do undergraduate business students who major in finance earn, on average, higher annual starting salaries than their peers who major in marketing? Address this question through a statistical hypothesis test. The file P10_23.XLS contains the starting salaries of 50 randomly selected finance majors and 50 randomly selected marketing majors.
a. Is it appropriate to perform a paired-comparison f-test in this case? Explain why or why not.
b. Perform an appropriate hypothesis test with a 1% significance level. Summarize your findings.
c. How large would the difference between the mean starting salaries of finance and marketing majors have to be before you could conclude that finance majors earn more on average? Employ a 1% significance level in answering this question.
Step by Step Answer:
Managerial Statistics
ISBN: 9780534389314
1st Edition
Authors: S. Christian Albright, Wayne L. Winston, Christopher Zappe