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Question
NARRBEGIN: NAR: SA_120_122Do graduates of undergraduate business programs with different majors tend to earn disparate starting salaries? Below you will find output from an ANOVA analysis for 32 randomly selected graduates with majors in accounting (Acct), marketing (Mktg), finance (Fin), and information systems (IS).
| Summary statistics for samples | |
| Acct. | |
| Sample sizes | 9 |
| Sample means | 32711.67 |
| Sample standard deviations | 2957.438 |
| Sample variances | 8746437.5 |
| Weights for pooled variance | 0.286 |
| Number of samples | 4 |
| Total sample size | 32 |
| Grand mean | 31039.22 |
| Pooled variance | 5308612.5 |
| Pooled standard deviation | 2304.043 |
| One Way ANOVA table | |||||
| Source | SS | df | MS | F | p-value |
| Between variation | 117609807 | 3 | 39203269 | 7.385 | 0.0009 |
| Within variation | 148641149 | 28 | 5308612 | ||
| Total variation | 266250955 | 31 |
| Difference | Mean diff | Lower limit | Upper limit |
| Acct. - Mktg. | 4874.167 | 1263.672 | 8484.661 |
| Acct. " Fin. | 2537.667 | -609.890 | 5685.223 |
| Acct. - IS | -157.619 | -3609.912 | 3294.674 |
| Mktg. " Fin. | -2336.500 | -5874.048 | 1201.048 |
| Mktg. - IS | -5031.786 | -8843.014 | -1220.557 |
| Fin. - IS | -2695.286 | -6071.216 | 680.644 |
(A) Assuming that the variances of the four underlying populations are equal, can you reject at a 5% significance level that the mean starting salaries for all given business majors are the same? Explain why or why not?
(B) Is there any reason to doubt the equal-variance assumption made in (A)? Support your answer.
Answer
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