Mathematics
Mathematics, 06.05.2020 02:14, kiannadgarnica

The Chartered Financial Analyst (CFA) designation is fast becoming a requirement for serious investment professionals. It is an attractive alternative to getting an MBA for students wanting a career in investment. A student of finance is curious to know if a CFA designation is a more lucrative option than an MBA. He collects data on 41 recent CFAs with a mean salary of $139,000 and a standard deviation of $60,000.
A sample of 53 MBAs results in a mean salary of $132,000 with a standard deviation of $23,000. (μ1 is the population mean for individuals with a CFA designation and μ2 is the population mean of individuals with MBAs.) Let CFAs and MBAs represent population 1 and population 2, respectively.
(a) Set up the hypotheses to test if a CFA designation is more lucrative than an MBA at the 5% significance level. Do not assume that the population variances are equal.
(b) Calculate the value of the test statistic. (Round intermediate calculations to 4 decimal places and final answer to 2 decimal places.)

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