Recent evidence suggests that graduating from college during bad economic times
ID: 3263424 • Letter: R
Question
Recent evidence suggests that graduating from college during bad economic times can impact the graduate’s earning power for a long time (Financial Times, June 1, 2012). An associate dean at a university wants to determine if the starting salary of his college graduates has declined from 2008 to 2010. He expects the mean of the salaries to be different between these two years. Use a 5% significance level to determine whether the mean starting salary has decreased from 2008 to 2010. What is your conclusion? Note: we do not have access to MiniTab. We only use Excel Data analysis tool pack. Please show answers using Excel.
Salary 2008 Salary 2010 35000 34000 56000 62000 49000 36000 52000 45000 47000 68000 48000 36000 59000 41000 48000 69000 52000 67000 45000 41000 65000 69000 52000 26000 36000 29000 44000 50000 41000 56000 44000 9000 54000 34000 38000 67000 55000 46000 48000 27000 47000 49000 45000 39000 36000 48000 50000 65000 49000 68000 39000 53000 28000 64000 56000 43000 55000 63000 42000 39000 63000 43000 42000 49000 52000 29000 52000 48000 55000 57000 61000 18000 52000 42000 64000 37000 45000 53000 47000 54000Explanation / Answer
Using Excel data analysis and used T test paired test
we get Output Summary
Our Hypothesis
Null hypothesis: H0: u1-u2 <=0
Alternate hypothesis: u1-u2>0
Test Statistic = 0.6764
P value = 0.2514
Since P value is greater than 0.05 we failed to reject the null hypothesis and conclude that salary has not been decreased
t-Test: Paired Two Sample for Means Salary 2008 Salary 2010 Mean 48700 46825 Variance 68574358.97 225122435.9 Observations 40 40 Pearson Correlation -0.055121244 Hypothesized Mean Difference 0 df 39 t Stat 0.67636856 P(T<=t) one-tail 0.251399236 t Critical one-tail 1.684875122 P(T<=t) two-tail 0.502798471 t Critical two-tail 2.02269092Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.