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 38 recent CFAs with a mean salary of $138,000 and a standard deviation of $34,000. A sample of 80 MBAs results in a mean salary of $130,000 with a standard deviation of $46,000. a) Specify the hypotheses to test whether a CFA designation is more lucrative than an MBA. b) Calculate the value of the test statistic and the p-value. Do not assume that the population variances are equal. c) At the 5% significance level, is a CFA designation more lucrative than an MBA?
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 38 recent CFAs with a mean salary of $138,000 and a standard deviation of $34,000. A sample of 80 MBAs results in a mean salary of $130,000 with a standard deviation of $46,000.
a) Specify the hypotheses to test whether a CFA designation is more lucrative than an MBA.
b) Calculate the value of the test statistic and the p-value. Do not assume that the population variances are equal.
c) At the 5% significance level, is a CFA designation more lucrative than an MBA?
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