You would like to get the highest paying job possible after graduating from UCR and are currently deciding whether to enroll in ECON 108 in the spring term or not. You find a sample of recent UCR graduates that majored in Economics (there are no double majors in the samples).

You sampled 100 Economics majors that took ECON 108 and you find that the average starting salary is 72K dollars, with a sample standard deviation of 10K dollars.

You sampled 75 Economics majors that did not take ECON 108 and you find that the average starting salary is 65K dollars, with a sample standard deviation of 15K dollars.

1.       You decide to test μι = μ2 at the 1% level of significance. What is the outcome of your test? Hint: Don't convert values to 1,000s. For example, the difference between the sample means is 7, not 7,000.)

a) Fail to reject the null hypothesis

b) Reject the null hypothesis

c) Accept the null hypothesis

d) Not enough information

2.       You decide to test μι με at the 10% level of significance. What is the outcome of your test?

a) Fail to reject the null hypothesis

b) Accept the null hypothesis

c) Reject the null hypothesis

d) Not enough information

4.       Which of the following statements is most correct?

a) I want to be very confident in the results of my hypothesis test, so the range in which I fail to reject the null hypothesis is relatively large.

b) The range in which I fail to reject is small, so I am relatively confident in my hypothesis test

c) I want to minimize type l errors, so the confidence in my hypothesis test is relatively low.

d) I am not very confident in the results of my hypothesis test because the range in which I fail to reject the null hypothesis is relatively large.