Question

A researcher randomly sampled 30 graduates of an MBA program and recorded data about their starting salaries. Of primary interest to the researcher is whether starting salaries differ based on gender. The researcher performs apooled-variance t-test of the mean salaries of the females (Population 1) and males (Population 2) in the sample. Assume α = 0.10.

1. If the p-value = 0.1898 and a two-tail test is conducted, what is the proper interpretation for the decision of this test?

A		There is sufficient evidence to indicate that females have a lower mean starting salary than male MBA graduates.
b		There is sufficient evidence to indicate that females have a higher mean starting salary than male MBA graduates.
c		There is sufficient evidence to indicate a difference in the mean starting salaries of male andfemale MBA graduates.
d		There is insufficient evidence to indicate any difference in the mean starting salaries of male and female MBA graduates.

Answer 1

Here is the mean starting salary of females

and is the mean starting salary of males.

We want test

vs

As the p-value of the test is 0.1898 which is greater than the level of significance (0.10) we do not reject H0 at 0.10 level of significance.

So

answer (C): There is insufficient evidence to indicate any difference in the mean starting salaries of male and female MBA graduates.

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