Research And Evaluation: Education And It's Influence On Higher Salaries

2202 words - 9 pages

One Sample Hypothesis Testing PAGE 1
Education And It's Influence on Higher SalariesUniversity of PhoenixRES 342]Education And It's Influence on Higher SalariesAs children grow and finish high school, society tells them the next step in life is to obtain a college education. Obtaining a degree is important because it will allow for greater opportunities and a better salary in any field of interest. Many occupations require a positive education qualification and one must possess this requirement in order to apply and be considered. However, is it true that higher education has a significant influence on higher salaries? And if higher education has an influence, how much education is sufficient, or are there other factors such as experience, age, tenure, gender, union or non-union memberships have greater influence.Previous studies have shown traditionally gender has been a main contributor on differences in salaries, indicating men average higher salaries than women. Although, many reasons exist for why this statement may be true and are up for debate, this paper's focus is not to address these reasons. Team C's objective is to focus on education and its influence on salary differences for women. In turn asking the question, "does higher education increase salary wages for females?" This is a closed-ended question with only two possible answers: 'yes' or 'no'. One of these answers is asserted by the null hypothesis (H0) and the other by the alternative (Ha). Therefore, Team C needs to see convincing evidence before believing higher education has influenced a higher salary for females.In order to evaluate such differences, a survey of 100 employees was conducted in a Southern, California community where manufacturing and construction industries employ most of the individuals. Out of the 100 individuals surveyed 47 were females; 7 of the females had less than high school diploma (less than 12 yrs), 26 had high school diploma no college (at least 12 yrs); 7 had some college or associate degree (13 to 15 yrs), and 7 had a bachelor degree or higher (16 yrs or more). Using a benchmark identified by the U.S. Department of Labor, U.S. Bureau of labor Statistics report on Highlights of Women's Earnings in 2007 indicates a difference with salary rate based on the 4 categories. This data was however, presented in with the median salary by weekly rate. Team C had calculated the rates provided for 2007 by 52 weeks to obtain an annual salary to compare its findings. The hypothesized mean salary of the population from 2007 will be used as the benchmark for Team C's testing and has been identified as $26,624. This is the average annual salary for those with a high school diploma or equivalent. Any education above this group should undoubtedly supply a larger salary.Based on Team C's initial observation of the surveyed population and historical data, we believe that higher education (any education over 12 years) has a potential to provide a higher mean salary...

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