Question

EDUCATION: Number of years of education.	WAGE: Wage (dollars per hour).
12	6.15
12	7
12	9
12	5.85
12	6.5
12	8
12	12.25
12	16.5
12	12
12	6.25
12	16.71
12	13.28
12	6.34
12	6
12	8
12	9.5
12	9.5
12	6.85
12	6.65
12	6.15
12	6
12	8.05
12	10
12	9
12	7
12	15.5
12	11.25
16	12.25
16	7.34
16	25
16	19.75
16	6.25
16	15
16	8.5
16	13.11
16	12.78
16	12.36
16	13.75
16	10.17
16	15

Open Wages-HW9 data. Test if people with 16 years of EDUCATION and people with 12 years of EDUCATION have wages that are significantly different on average. Answer questions 5 to 8.

5. What test did you perform? (6.25 points)

• a. Simple Regression
• b. Multiple Regression
• c. Two sided t-test
• d. None of these

6. What is the P-value? (6.25 points)

• a. 0.008181
• b. 0.016362
• c. 6.23E-05
• d. None of these

7. What is the Statistical interpretation? (6.25 points)

• a. The P-value is too small to have a conclusive answer.
• b. The P-value is greater than 5% thus the answer is inconclusive
• c. The P-value is greater than 5% thus we are very certain that the averages are significantly different.
• d. The P-value is smaller than 5% thus we are confident that the averages are significantly different.
• e. None of these

8. What is the conclusion? (6.25 points)

• a. The test is inconclusive and more data is needed.
• b. Since the test is inconclusive the conclusion is inconclusive as well.
• c. We can claim that people with 16 years of EDUCATION and people with 12 years of EDUCATION have wages that are significantly different on average.
• d. We cannot claim that people with 16 years of EDUCATION and people with 12 years of EDUCATION have wages that are significantly different on average
• e. None of these

Answer 1