Question

Suppose you want to test for whether there is a difference in starting salaries for those with a finance degree compared to those with an accounting degree. You sample 35 graduates with a finance degree and find the average starting salary to be 58,000 with a sample standard deviation of 5,000. You also take a sample of 40 graduates with an accounting degree and find the average starting salary 56,000 to be and a sample variance of 3000. Suppose you want to test the hypothesis that the starting salary for accounting degree graduates is less than that of finance degree graduates. ( D = μ a c c o u n t i n g − μ f i n a n c e ) Which of the following is the hypothesis test?

Group of answer choices:

H0:D<0;HA:D<0

H0:D≤0;HA:D>0

H0:D≥0;HA:D<0

Answer 1

Since we need test whether the starting salary for accounting degree graduates is less than that of finance degree graduates

D = μ a c c o u n t i n g − μ f i n a n c e

So, the null hypothesis will be:

H0:D≥0

starting salary for accounting degree graduates is more than and equal to that of finance degree graduates

And the alternate hypothesis will be:

the starting salary for accounting degree graduates is less than that of finance degree graduates

HA:D<0

Hence the correct answer is:

H0:D≥0;HA:D<0