7159257 - 56 Let us denote the average starting salary of...

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56. Let us denote the average starting salary of the student of major by , Here we can re-write as , When is the effect due to the is major in starting salaries and is the error part. Here we need to test if the graduates of the undergraduate business programme with different majors tend to earn disparate starting salaries or not. Or in other words, we want to test: against all possible alternatives. For that purpose we use the test statistics: when and where is the number of classes, here . We reject our null hypothesis at significance level if we have calculated when is the upper point of the distribution with After calculation, as shown in the excel sheet attached, we find: Calculated and So clearly holds true and we can safely reject at 5% level on basis of the given data, i.e., students from different majors get disperse starting salaries.
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a. In the first test we assumed that the data is coming from four different populations which may or may not have different mean but definitely have same variance. But this assumption may not hold
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7159257 - 56 Let us denote the average starting salary of...

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