Question

On the basis of data provided by a salary survey, the variance in annual salaries for seniors in public accounting firms is approximately 2.7 and the variance in annual salaries for managers in public accounting firms is approximately 11.7. The salary data were provided in thousands of dollars. Assuming that the salary data were based on samples of 25 seniors and 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

H_a: σ₁² ≤ σ₂²

H₀: σ₁² = σ₂²

H_a: σ₁² ≠ σ₂²

    

H₀: σ₁² ≤ σ₂²

H_a: σ₁² > σ₂²

H₀: σ₁² ≠ σ₂²

H_a: 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 can 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 cannot conclude that the population variances are not equal for seniors and managers.

Answer 1