Question

# Suppose you have data regarding the yearly wages of workers before and after they obtained an...

Suppose you have data regarding the yearly wages of workers before and after they obtained an associates degree. If you wanted to use this data to test whether workers earn higher wages with an associates degree than without, which test statistic would be appropriate? Select one:

a. Two-sample t-test assuming equal variances

b. Two-sample t-test assuming unequal variances

c. Paired two-sample t-test

d. Any of the above

e. Only (a) and/or (b)

Explanation:

Here we have dependent samples and not independent samples. We have the yearly wages of the same workers before and after they obtained a graduate degree. The most appropriate test for comparing wages for dependent samples is using the paired two-sample t-test.

The two-sample t-test assuming equal variances/Two-sample t-test assuming unequal variances is used in scenarios in which we are dealing with independent samples so these cannot be used here.

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