Nonparametric Hypothesis Testing Paper Week 4

1235 words - 5 pages

Nonparametric Hypothesis Testing Paper Does going to school pay off and is the payoff larger based on an individual抯 occupation? Most people would answer yes to this question. People decide to go to college for a multitude of reasons. One of the most important is the expectation of economic gain. This research paper will illustrate the economic value of an education and will go a step further to show that a chosen occupation can also add to future economic success. Team C will explore the relationship between educational attainment and earnings. Additionally, Team C will provide, by level of occupation, estimates comparisons of the average yearly incomes of adults in both professional and service occupations. These estimates of yearly earnings, which are based on the data from the data sets provided by the University of Phoenix rEsource data files, will help to answer one question: Is there a relationship between chosen occupation and earnings?Numerical and Verbal HypothesisTeam C抯 null hypothesis is that the mean annual income of individuals with educational attainment beyond 12 years, employed in a professional occupation, is equal to mean income earnings of individuals having the same educational attainment with a service oriented occupation. The alternate hypothesis is that the mean annual income of individuals with educational attainment beyond 12 years, employed in a professional occupation, is not equal to mean income earnings of individuals having the same educational attainment with a service oriented occupation.Definition of Population SamplesS1: Wage earners with a professional occupation and education beyond 12 years.S2: wage earners with a service occupation and education beyond 12 years.Numerical HypothesesThe mean incomes in the population of wage earners are the same in the two treatment groups: H0: = he mean incomes in the population of wage earners are not the same in the two treatment groups: H1: ≠ ive Step Hypothesis TestDesignTeam C抯 research is drawn from the 揥ages and Wage Earners Data Set provided by the University of Phoenix rEsource (see Appendix A for data set). Team C will focus on the data that shows the annual wages in dollars, years of education, and occupation. Team C will look specifically at the service and professional occupations. For the purposes of this research, professional occupations are defined as 揷ertain types of skilled work requiring formal training/education (online dictionary). Service occupations are described as types of unskilled work that do not require formal training or education.Team C will use the Wilcoxon Mann-Whitney Test, one of the most powerful nonparametric tests for comparing two populations. The null hypothesis will test the two populations to see if they have identical means against the alternative hypothesis that the means function differently. The Wilcoxon Mann-Whitney Test will be used in place of a two-sample t-test. The Wilcoxon...

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