One Sample Hypothesis Testing

One Sample opening Testing The significance of earnings is a growing facade in todays economy. mundane operation, individuals, and families alike rely heavily on each sale or gestatecheck to provide financial stability throughout. Depending on the nature of labor, w ages are typically compensated in accords to whizs experience and education or specialization. Moreover, calculating the specified industry, occupation title, education, experience on-the-job, gender, race, age, and membership to a articulation will additionally influence wages.To help analyze operation pay scales and remain within calculate a profession should obtain info pertaining to current variations in wage. Today statistics allow a business or businesses to do so in a timely and proficient manner. The purpose of the succeeding authorship is to communicate a system statement regarding the wages of Latinos and ovalbumin role players. police squad up B would like to situate whether race has an influen ce on the wage of these specific thespians. Team B will convey this selective information of wages in some(prenominal) a numerical and verbal manner.Moreover, it is to describe and perform the five-step scheme visitation on the wages and wage earner data set, including data tables and results of the computations of a z-test or t-test by musical mode of graphical and tabular methods. Also the paper will depict the results of all testing and convey how the results inclined Team Bs hypothesis testing may be used to answer the investigate question. Hypotheses Learning Team Bs verbal hypothesis question asks Does the think up salary of a Hispanic worker exceed thirty thousand dollars and that of the mingy salary of a gabardine worker? The numerical question used for our hypothesis test is > $30,000.Another numerical question is 1>2. 1 is define as the sampling mean of Hispanic workers salaries and 2 defined as the sample mean of albumen workers salaries. The Hispanic sa mple population is six workers from the Wages and Wage Earners Data Set. Learning Team B needs to consider whether or not the population is normal as the population size is little than 30. This also prohibits use of the Central Limit Theorem until the data set is proven normal. The wage of one worker being much higher than the others means our data will be skew right and this data may not be a good sample.The existence of this outlier means our results will be skewed meaning we should find a better sample to base our results on. More importantly, the existence of an outlier reminds us that the mean is not always a good measure of the typical harbor of X. (Doane & Seward, 2007). Five-step Hypothesis Test Team B would like to find if average Hispanic workers bring more than $30,000 per year. The teams cipher hypotheses or (HO) is that Hispanic pay is greater than or equal to $30,000. The teams alternative hypothesis or (H1) is that Hispanic pay is less than $30,000.The signific ance level has been set at . 05 or 95%. The z score of . 05 is -1. 645. If the z-value is less than -1. 645 then the team can reject the null hypothesis and acquit the alternative hypothesis. If the z-value is greater than -1. 645 then the team fails to reject the null hypothesis, meaning Hispanic workers do, in fact, make more than $30,000 a year. Hypotheses HO Hispanic pay ? 30,000 H1 Hispanic pay > 30,000 Data Set (University of Phoenix, 2007) 83,601 29,736 15,234 24,509 33,461 13,481 reflexion 1 Mean = (83,601+29,736+15,234+24,509+33,461+13,481)/6M = 33,337 Formula 2 Standard deflection = SQRT(((X1-M)Squared+(X2-M)Squared)/(N-1)) SD = SQRT(((83,601-33,337)Squared+(29,736-33,337)Squared)/(6-1)) SD = SQRT(((50,24)Squared =(3,601)Squared+(18,094)Squared)/(5) SD = 25,841. 97 Hispanic pay mean = 33,337 Hispanic pay Standard deviation = 25,842 Sample size = 6 Formula 3 Z-Test = (Mean-X)/(Standard Deviation/SQRT(N)) Z = (33,337 30,000)/(25842/SQRT(6)) Z = 3,337/10,549. 94 Z = . 3 163 As a result, we find that Z > -1. 645 Next team B wanted to see what the wage difference was between Caucasians and Hispanics.The teams null hypothesis or (HO) is that white pay wages are ? Hispanic pay wages. The teams alternative hypothesis or (H1) is White pay wages are < Hispanic pay wages. White wages mean = 31,387. 39 Hispanic Wage mean = 33,337. 00 White wages STDEV = 16,810. 03 Hispanic wage STDEV = 25,843. 24 Finally the team wanted to see if age played a part in the difference in pay wages. Our null hypothesis or (HO) is that White age is = to Hispanic ages. The alternative or (H1) is that White age is ? to Hispanic ages. White Wage age mean = 39. 71429 Hispanic wage age mean = 35. 5 White wage age STDEV = 12. 3484 Hispanic wage age STDEV = 14. 25132 Test Results This test is significant because it shows that, found on the sample population the average Hispanic worker makes more than $30,000 per year. This is because the team performed a one tag Z-Test to determi ne with 95% confidence that Hispanic wages were greater than $30,000 per year.This is a one tailed test because the alternate hypothesis is only proven when the Z Value is less than the critical value of $30,000 in this case. With a Z Value of . 3163, we find that our Z-Test has yielded a result significantly higher than -1. 45, which proves H0, or that Hispanic pay is greater than $30,000 per year. The test also concluded that Hispanic workers make more than Caucasian workers on average. We also gathered data showing the average age of Caucasian workers is higher than that of Hispanic workers. In conclusion, this paper has discussed and researched the various influence of ones race and wages. Our results provided immense data relating to our hypotheses and both verbal and numerical hypothesis were proven to conclude that Hispanic workers on average make more than $30,000 a year and also more than the average Caucasian worker.By using a smaller sample Team B was able to distinguish any correlations between both races and determine a sizeable result. In todays economy wages are a momentous factor and whether ones Hispanic or not wages have a sizeable impact on ones life. We believe our research shows that Hispanics have an advantage in the workplace over Caucasian workers. References Doane, D. P. & Seward, L. E. , (2007). Applied Statistics in Business and Economics. Boston, MA McGraw-Hill/Irwin.