Question

In: Statistics and Probability

Samples of starting annual salaries for individuals entering the public accounting and financial planning professions follow....

Samples of starting annual salaries for individuals entering the public accounting and financial planning professions follow. Annual salaries are shown in thousands of dollars.

Public Accountant Financial Planner
49.2 48.0
57.8 48.2
56.3 54.1
58.2 55.9
53.2 51.9
55.0 52.6
49.9 50.7
60.5 52.9
57.0 52.8
52.9 47.9

(a) Use a 0.05 level of significance and test the hypothesis that there is no difference between the starting annual salaries of public accountants and financial planners.

State the null and alternative hypotheses.

H0: Median salary for public accountants − Median salary for financial planners ≥ 0
Ha: Median salary for public accountants − Median salary for financial planners < 0H0: Median salary for public accountants − Median salary for financial planners > 0
Ha: Median salary for public accountants − Median salary for financial planners = 0     H0: Median salary for public accountants − Median salary for financial planners ≤ 0
Ha: Median salary for public accountants − Median salary for financial planners > 0H0: The two populations of salaries are not identical.
Ha: The two populations of salaries are identical.H0: The two populations of salaries are identical.
Ha: The two populations of salaries are not identical.

Find the value of the test statistic.

W =

Find the p-value. (Round your answer to four decimal places.)

p-value =

What is your conclusion?

Reject H0. There is not sufficient evidence to conclude that there is a significant difference between the starting annual salaries of public accountants and financial planners.

Do not reject H0. There is sufficient evidence to conclude that there is a significant difference between the starting annual salaries of public accountants and financial planners.     

Reject H0. There is sufficient evidence to conclude that there is a significant difference between the starting annual salaries of public accountants and financial planners.

Do not reject H0. There is not sufficient evidence to conclude that there is a significant difference between the starting annual salaries of public accountants and financial planners.

(b). What is the sample median annual salaries (in $) for the two professions?

Public Accountants sample median = $

Financial Planners sample median = $

Solutions

Expert Solution

Hypothesis:

.H0: The two populations of salaries are identical.
Ha: The two populations of salaries are not identical.

First we will calculate the mean and sample standard deviation for the two professions

Now we will perform the hypothesis test:

Find the value of the test statistic.

W =2.414

Find the p-value. (Round your answer to four decimal places.)

p-value =0.0267

What is your conclusion?

Reject H0. There is sufficient evidence to conclude that there is a significant difference between the starting annual salaries of public accountants and financial planners.

Medians:

For Financial Planner

For Public Accountant

orchestra answered 2 years ago
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