SOLUTION: Company is interested in finding out if there is any difference in the average salary received by managers of two divisions. Accordingly, samples of 12 managers in the first divisi

Algebra ->  Finance -> SOLUTION: Company is interested in finding out if there is any difference in the average salary received by managers of two divisions. Accordingly, samples of 12 managers in the first divisi      Log On


   

Question 1202585: Company is interested in finding out if there is any difference in the average salary received by managers of two divisions. Accordingly, samples of 12 managers in the first division and 10 managers in the second division where selected at random. The results are given below:
Div 1: n1=12, bar x1=12500, s1=320
Div2: n2=10, bar x2=11200, s2=480
Use alpha= 0.05 to find out whether there is significant difference in the average salary
Answer by Theo(13342) About Me  (Show Source):
You can put this solution on YOUR website!
first division:
sample size is 12
sample mean is 12500
sample standard deviation is 320

second division:
sample size is 10
sample mean is 11200
sample standared deviation is 480

the calculator at https://www.graphpad.com/quickcalcs/ttest2/ indicates that the diference is significant at alpha = .05.

here are the results.



here's a reference on how to do it via formula.
https://www.jmp.com/en_us/statistics-knowledge-portal/t-test/two-sample-t-test.html
unfortunately, if you work it through, you will probably not get the exact answer, but it should be close.
i worked through it and got a t-score of 7.59.
this is the same as the results from the calculator.
that doesn't always happen because the calcuators can have different assumptions than the formula used, but it happily worked out in this case.