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Problem

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14 Dec 2021

Given information

The known standard deviation in salary for all mid-level professionals in the financial industry is  Company A and Company B are in the financial industry. Suppose samples are taken of mid-level professionals from Company A and from Company B. The sample mean salary for mid-level professionals in Company A is. The sample means the salary for mid-level professionals in Company B is . Company A and Company B management want to know if their midlevel professionals are paid differently, on average.

Step-by-step explanation

Step 1.

Assuming the mean salary of mid-level professionals of Company  to be , and that of the Company to be , the null and alternative hypothesis can be definedas follows:

The Null hypothesis:

 

The alternative hypothesis:

 

This shows that this hypothesis test is for independent group means, population standard deviations, and/or variances are known.

Hence, option .  

 

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