One Sample Hypothesis Testing

One Sample Hypothesis interrogatory The significance of earnings is a growing facade in like a shots economy. Daily operation, individuals, and families alike rely heavily on for each unrivalled sale or profitcheck to provide financial stability throughout. Depending on the nature of labor, reinforcement are typically compensated in accords to ones experience and education or specialization. Moreover, calculating the specified industry, crinkle title, education, experience on-the-job, gender, run for, age, and membership to a union bequeath additionally shape recompense.To help analyze operation founder scales and remain within cipher a business should obtain selective information pertaining to current variations in wage. straightaway statistics allow a business or businesses to do so in a timely and proficient manner. The purpose of the succeeding report is to spread abroad a dead reckoning statement regarding the contend of Hispanics and tweed workers. Team B would like to determine whether race has an influence on the wage of these circumstantial workers. Team B will convey this data of wages in both a numerical and verbal manner.Moreover, it is to describe and perform the five-step system political campaign on the wages and wage earner data nonplus, including data tables and results of the computations of a z-test or t-test by way of graphical and tabular methods. overly the paper will depict the results of all testing and convey how the results precondition Team Bs hypothesis testing may be used to answer the research question. Hypotheses Learning Team Bs verbal hypothesis question asks Does the repute salary of a Hispanic worker exceed thirty thousand dollars and that of the mean salary of a Caucasian worker? The numerical question used for our hypothesis test is > $30,000.Another numerical question is 1>2. 1 is defined as the hear mean of Hispanic workers salaries and 2 defined as the test mean of Caucasian workers salari es. The Hispanic sample population is six workers from the prosecutes and earnings Earners Data Set. Learning Team B needs to consider whether or not the population is normal as the population surface is less(prenominal) than 30. This also prohibits use of the Central Limit Theorem until the data set is proved normal. The wage of one worker being much higher(prenominal) than the others government agency our data will be skewed 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 value of X. (Doane & Seward, 2007). Five-step Hypothesis canvass Team B would like to find if mediocre Hispanic workers hold back more than $30,000 per year. The team ups null hypotheses or (HO) is that Hispanic recompense is greater than or equal to $30,000. The tea ms secondary hypothesis or (H1) is that Hispanic pay is less than $30,000.The significance 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 past the team can reject the null hypothesis and accept 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 Formula 1 think up = (83,601+29,736+15,234+24,509+33,461+13,481)/6M = 33,337 Formula 2 Standard Deviation = 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- scrutiny = (Mean-X)/(S tandard Deviation/SQRT(N)) Z = (33,337 30,000)/(25842/SQRT(6)) Z = 3,337/10,549. 94 Z = . 3163 As a result, we find that Z > -1. 645 Next team B wanted to agnise 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 washrag 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, based on the sample population the average Hispanic worker makes more than $30,000 per year. This is because the team performed a one pursue Z-Test to determine 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 proved 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 cogitate 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 proved to conclude that Hispanic workers on average make more than $30,000 a year an d also more than the average Caucasian worker.By using a smaller sample Team B was able to distinguish some(prenominal) correlations between both races and determine a sound result. In nowadayss economy wages are a momentous factor out and whether ones Hispanic or not wages have a brawny 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.