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| Subject:
Statistical Question
Category: Miscellaneous Asked by: cupid2323-ga List Price: $10.00 |
Posted:
29 Dec 2005 13:07 PST
Expires: 01 Jan 2006 15:05 PST Question ID: 611015 |
One reads that a business school graduate with an undergraduate degree earns more than a high school graduate with no additional education, and a person with a master's degree or a doctorate earns even more. To investigate we select a sample of 25 mid-level managers of companies with less than 200 employees. Their incomes, classified by highest level of education, follow. Income ($ thousands) High School or Less 45 47 53 62 39 43 54 Undergraduate Degree 49 57 85 73 81 84 89 92 62 Master's Degree or More 51 73 82 59 94 89 89 95 73 Test at the .05 level of significance that there is no difference in the arithmetic mean salaries of the three groups. If the null hypothesis is rejected, conduct further tests to determine which groups differ. |
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| Subject:
Re: Statistical Question
From: hnguyen-ga on 29 Dec 2005 22:20 PST |
Running ANOVA, we get
Df Sum Sq Mean Sq F value Pr(>F)
x 2 3872.0 1936.0 10.185 0.0007398 ***
Residuals 22 4182.0 190.1
The p-value is .00073, much smaller than the threshold of .05, so we
can safely reject the null hypothesis that there is no difference in
the salaries of the three groups. Running further test to see which
pairs differ,
Estimate Std. Error t value Pr(>|t|)
(Intercept) 49.000 5.211 9.403 3.66e-09 ***
x2 25.667 6.948 3.694 0.001268 **
x3 29.333 6.948 4.222 0.000351 ***
From here, we know that pair 1v2 and 1v3 differ among themselves with
p-values .0012 and .00034, respectively. (1, 2, and 3 are categorical
variables corresponding to High School, Undergraduates, and Masters'
Degree). Pair 2v3 are pretty much the same. A graphical representation
of the data above can be found here
http://www.stat.ucla.edu/~hnguyen/data.jpeg |
| Subject:
Re: Statistical Question
From: cupid2323-ga on 30 Dec 2005 08:53 PST |
Can this be placed in excel?? I am just having a hard time understanding. |
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