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Amstat News (December 2004) lists median salaries for associate professors of statistics at research institutions and at liberal arts and other institutions in the United States. Assume a sample of 200 associate professors from research institutions having an average salary of $70,750 per year with a standard deviation of S6000. Assume also a sample of 200 associate professors from other types of institutions having an average salary of $65,200 with a standard deviation of $5000. Test the hypothesis that the mean salary for associate professors in research institutions is $2000 higher than for those in other institutions. Use a 0.01 level of significance. Assume equal variances.
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