Question
On the basis of data provided by a salary survey, the variance in annual salaries for...
On the basis of data provided by a salary survey, the variance in annual salaries for seniors in public accounting firms is approximately 2.1 and the variance in annual salaries for managers in public accounting firms is approximately 11.1. The salary data were provided in thousands of dollars. Assuming that the salary data were based on samples of 25 seniorsand 26 managers, test to determine whether there is a significant difference between the variances of salaries for seniors and managers. At a 0.05 level of significance, what is your conclusion?
State the null and alternative hypotheses.
H0: σ12 > σ22
Ha: σ12 ≤ σ22
H0: σ12 = σ22
Ha: σ12 ≠ σ22
H0: σ12 ≠ σ22
Ha: σ12 = σ22
H0: σ12 ≤ σ22
Ha: σ12 > σ22
Find the value of the test statistic. (Round your answer to two decimal places.)
Find the p-value. (Round your answer to four decimal places.)
p-value =
State your conclusion.
Do not reject H0. We cannot conclude that the population variances are not equal for seniors and managers.Reject H0. We cannot conclude that the population variances are not equal for seniors and managers. Reject H0. We can conclude that the population variances are not equal for seniors and managers. Do not reject H0. We can conclude that the population variances are not equal for seniors and managers.
Homework Answers
Answer #1
The statistical software output for this problem is:
Hence,
Hypotheses:
H0: σ12 = σ22
Ha: σ12 ≠ σ22
Test statistic = 5.29
p-value = 0.0001
Conclusion: Reject H0. We can conclude that the population variances are not equal for seniors and managers.
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