Question: (11)

Business schools at certain prestigious universities offer non-degree management-training programs for high-level business executives. The programs supposedly develop executives‘ leadership abilities and help them to advance to higher management positions within two years after program completion.

A management consulting firm wants to test the effectiveness of these programs by investigating the claim of the business schools that executives who undergo the training earn at least $4000 more per annum than comparable executives who do not undergo the special training programs. The firm traces a random sample of 28 top executives who earn, at the time the sample is selected, about the same salaries. Out of this group 13 randomly-selected executives are enrolled in one of the university programs under study. Two years later, the average annual salaries and standard deviations for the two groups are computed. The results are summarized in the table below

Conduct a test, at the 5% level of significance, to determine the conclusion that was reached by the consulting firm.

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