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
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 .