Question

In 1. Relationship Salary – Gender, you are asked to conclude whether there is a significant difference between the salaries of the male and female executives using confidence intervals. Which of the following statements is correct?

(a) The 99.9% confidence interval for the average male salary is [$65444, $76573] and for average female salary is [$57217, $67937]. There is no significant difference at the 0.1% significance level.

(b) The 95% confidence interval for the average male salary is [$67953, $74064] and for average female salary is [$59614, $65540]. There is a significant difference at the 5% significance level.

(c) Both (a) and (b) are correct.

(d) Both (a) and (b) are incorrect

Answer 1

1. Here for the given statement

(c) Both (a) and (b) are correct.

because, for statement (a) the average female salary is [$57217, $67937] and some female salary is equal to the average male salary is [$65444, $76573]. Therefore, there is no significant difference at the 0.1% significance level.

and for statement (b) the average female salary is [$59614, $65540] and no female salary is equal to the average male salary is [$67953, $74064]. therefore, there is a significant difference at the 5% significance level.