Provide an appropriate response Data were collected from CEO

Provide an appropriate response.

Data were collected from CEOs in the consumer products and telecommunication industries. It is desired to compare the mean salaries between CEOs in the consumer products industry and CEOs in the telecommunications industry. The data are analyzed below.

Hypothesis: _x  = _y

Samples from SALARY

X =  Consumer Products
Y =  Telecommunications

Xx(bar over)= 1761
s_x = 3.97555E6
Sample size of X = 21

Xy(bar over)= 1093.5
s_y = 103255
Sample size of Y = 21

_x - _y = 667.5
test statistic = 1.47809
DF = 40
P-VALUE = 0.147626
P-VALUE/2 = 0.0738131
SD. ERROR = 451.597
Which of the following assumptions are necessary to perform the test above?

A. Both populations of salaries for the two industries have approximate normal distributions.

Both the population mean salaries are equal and the population standard deviations are equal.

The population standard deviations are equal.

D. None. The Central Limit Theorem takes care of all assumptions

E. The population mean salaries are equal.

Solution

A. Both populations of salaries for the two industries have approximate normal distributions. is the necessary choice for carrying out the experiment.

If normally distributed then we can find difference between means and use appropriate tests.