case study 4

Statcrunch Chapter 10

This project requires you to look at income data from 51 different areas (50 states and D.C.). This data has a column for each of the following: White Women, Black Women, All Men. This is actual data comprised from the Census 2013 American Consumer Surveys. The goal is to work with real data, run statistics and draw conclusion on the difference or similarities in income based on race. There are 5 parts to this project that you will work on during 5 different weeks of the course. You will be writing conclusions, differences and similarities between the data sets after each part so in the end you have a complete report that will be submitted. In the end your findings should discuss the discrepancies in income based on race. Each week I will grade your submission and provide feedback on parts you should redo before completing the final project at the end of the semester.

Part 4

Task 1: Open the Income data set in Statcrunch.

Task 2: By this point you have probably noticed that Whites seems to be making more money. Perform a one sample hypothesis test to see if the Average White Woman Income is greater than the Average Black Woman Income. Remembering that the average Black woman income is $33620. Use alpha of .05 to discuss the conclusion.

Task 3: You will also probably have noticed that Women income is less than male income. Perform a hypothesis test to see if the White Woman income is less than the average Male income. Remember that the average Male income is $47337. Use an alpha of .05 to discuss the conclusion.

Task 4: Type your findings. Be sure to include the interpretation or conclusion statement and if we should or should not reject the null. Have we finally shown with proof that there is a difference in income made based on your race and or gender? How can you be sure?

***Step by Step directions for Statcrunch are on the following Pages

***Please follow formatting guidance provided in the case study template

Performing a One Sample Hypothesis Test:

Make sure you have opened the Income data set. Click Stats T-Stats One Sample With Data. Select only White to start. Then in the hypothesis test we want to change the alternate to greater than and the mean equals value to 33620. Click compute to run the test.

Make sure you highlight, copy and paste this data into your write up.

You are now going to perform the second hypothesis test. Click Stats T-Stats One Sample With Data. Select White to start. Then in the hypothesis test we want to change the alternate to less than and the mean equals value to 47337. Click compute to run the test. Highlight, copy and paste this data into your write up.

Now type your findings for the week. Be sure to list the hypotheses, P value, alpha value, whether you reject or do not reject the null, and write an interpretation sentence. This should be done for each of the two hypothesis you preformed. Have you finally shown with proof that there is a difference in income made based on your race? How can you be sure? Discuss your conclusions.

Please be sure to review proper formatting in the case study template. You should be explaining the null and alternative hypotheses and why they are the way they are BEFORE posting the results of the test.