You have a random sample of average salaries for various jobs for 100 organizations in the manufacturing
Question:
You have a random sample of average salaries for various jobs for 100 organizations in the manufacturing sector. Each job is classified as type A,B,C,D:A: Production Workers
B: Purchasing Agents
C: Inspectors, testors, sorters, samplers and weighers
D: Machinists
You wish to determine whether there is a relationship between average salary and job type (i.e. are the population mean salaries are equal for the 4 different job types). Use the results above for the next four parts:
a) Set up a hypothesis and write up a statement of how confident you are that some population mean salaries are different.
b) Explain if your results are valid and reliable, and if not, what can you conclude (hint: check two assumptions!).
c) Is it important that the data be from a random sample? What could be the problem if it were not?
d) Use the Tukey pairwise comparisons to help you write up a series of statements detailing which job types have higher population mean average salaries than others with at least 95% confidence.
Introduction to Econometrics
ISBN: 978-0133595420
3rd edition
Authors: James H. Stock, Mark W. Watson