Question: Salary is hypothesized to depend on educational qualification and occupation. To understand the dependency, the salaries of 40 individuals [SalaryData.csv] are collected and each person's

Salary is hypothesized to depend on educational qualification and occupation. To understand the dependency, the salaries of 40 individuals [SalaryData.csv] are collected and each person's educational qualification and occupation are noted. Educational qualification is at three levels, High school graduate, Bachelor, and Doctorate. Occupation is at four levels, Administrative and clerical, Sales, Professional or specialty, and Executive or managerial. A different number of observations are in each level of education - occupation combination.

[Assume that the data follows a normal distribution. In reality, the normality assumption may not always hold if the sample size is small.]

  1. State the null and the alternate hypothesis for conducting one-way ANOVA for both Education and Occupation individually.
  2. Perform a one-way ANOVA on Salary with respect to Education. State whether the null hypothesis is accepted or rejected based on the ANOVA results.
  3. Perform a one-way ANOVA on Salary with respect to Occupation. State whether the null hypothesis is accepted or rejected based on the ANOVA results.
  4. If the null hypothesis is rejected in either (2) or in (3), find out which class means are significantly different. Interpret the result.

Dataset -

Education Occupation Salary

Doctorate Adm-clerical 153197

Doctorate Adm-clerical 115945

Doctorate Adm-clerical 175935

Doctorate Adm-clerical 220754

Doctorate Sales 170769

Doctorate Sales 219420

Doctorate Sales 237920

Doctorate Sales 160540

Doctorate Sales 180934

Doctorate Prof-specialty 248156

Doctorate Prof-specialty 247724

Doctorate Prof-specialty 249207

Doctorate Prof-specialty 235334

Doctorate Prof-specialty 248871

Doctorate Prof-specialty 257345

Bachelors Adm-clerical 160910

Bachelors Adm-clerical 162494

Bachelors Adm-clerical 188729

Bachelors Prof-specialty 99185

Bachelors Prof-specialty 90135

Bachelors Prof-specialty 100135

Bachelors Prof-specialty 133696

Bachelors Sales 149909

Bachelors Sales 191712

Bachelors Sales 167431

Bachelors Sales 260151

HS-grad Sales 50103

HS-grad Sales 50122

HS-grad Sales 52242

HS-grad Adm-clerical 75333

HS-grad Adm-clerical 77743

HS-grad Adm-clerical 83203

HS-grad Prof-specialty 90456

HS-grad Prof-specialty 100678

HS-grad Prof-specialty 95469

Bachelors Exec-managerial 173935

Bachelors Exec-managerial 212448

Bachelors Exec-managerial 173664

Bachelors Exec-managerial 212760

Doctorate Exec-managerial 212781

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