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Identify the Test that is required and explain why: an investigator tries to determine the effects...

Identify the Test that is required and explain why:

an investigator tries to determine the effects of experience and education on annual income. Subjects are categorized as having one of three levels of experience and one of four levels of education. The dependent measure is annual income.

Math   Statistics-And-Probability   
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Answer #1

The test would be two-way ANOVA test.

As there are two factors here - Education and experience

The effect of the above two factors over annual income needs to be studied.

Education is at 4 levels and experience is at 3 levels.

So there are 3 null hypotheses to test using 2-way ANOVA

1.) There is no significant difference in annual income at 4 different education levels.

2.) There is no significant difference in annual income at 3 different experience levels.

3.) There is no significant interaction in education and experience to impact the annual income.

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