Multiple Sample Hypothesis Testing

RES342: Research 11

June 14, 2010

Multiple Sample Hypothesis Testing

The purpose of this paper is to create a hypothesis based on two-sample tests. Two-sample tests compare two sample estimates with each other, whereas one-sample tests compare a sample estimate with a non-sample benchmark (Doane & Seward, 2007). The learning team has chosen to create a hypothesis testing using the wages and wage earners data set. The learning team has developed one business research question from which the team will formulate a research hypothesis. The business research question and testing simply involves creating two separate groups of the data set, and testing whether a difference in the mean of the earnings in both the older group, ages 42-64 and the younger group, ages 18-41 exists. To create a solid testing hypothesis, the team has formulated both a numerical and verbal hypothesis statement, conducted the five-step hypothesis test on the data, and presented a description of the test results by explaining how the discoveries from the hypothesis testing can be used to answer the research question.

Learning Team A believes that there are many factors that affect an individual’s wages. Some of factors that affect one’s wages are abilities, experience, education level, and the region where one lives. The team believes that age may also be a factor and our hypothesis will determine if there is a difference in the mean wages of individuals who are in the younger group, age 18 – 41 and the older group of individuals age 42 – 64. A random sample of 100 individuals is used for the research, and the group was divided into the two age groups. The hundred individuals represented in the group ranged in age from 18 to 64. The mean wage for the entire sample is $30,833. The range of the 100 individual earnings is $9,879 to $83,601. The descriptive statistics information was generated using Excel.

Data for entire sample:

|Descriptive statistics | | |count |100 | |mean |30,833.46 | |sample variance |287,204,105.89 | |sample standard |16,947.10 | | | | |deviation | | |minimum |9879 | |maximum |83601 | |range |73722 |

|Descriptive statistics | | | | | | | | |Age | | |count |100 | | |mean |39.11 | | |sample variance |158.06 | | |sample standard deviation |12.57 | | |minimum |18 | | |maximum |64 | | |range |46 | |

Dividing the sample into two groups presented Learning Team A with the following information: Age 42 - 64

|Descriptive statistics | | | | | | |# 1 | |count |44 | |mean |31,890.52 | |sample variance |255,127,809.14 | |sample standard deviation |15,972.72 | |minimum |9879 | |maximum |83569 | |range...