Scenario (information repeated for deliverable 01, 03, and 04)
A major client of your company is interested in the salary distributions of jobs in the state of Minnesota that range from $30,000 to $200,000 per year. As a Business Analyst, your boss asks you to research and analyze the salary distributions. You are given aspreadsheetthat contains the following information:
- A listing of the jobs by title
- The salary (in dollars) for each job
Deliverable 4 - Hypothesis Tests.xlsx
In prior engagements, you have already explained to your client about the basic statistics and discussed the importance of constructing confidence intervals for the population mean. Your client says that he remembers a little bit about hypothesis testing, but he is a little fuzzy. He asks you to give him the full explanation of all steps in hypothesis testing and wants your conclusion about two claims concerning the average salary for all jobs in the state of Minnesota.
Data Job TitleSalary Accountants and Auditors68500source: http://www.bls.gov/ Actuaries97070 Administrative Law Judges, Adjudicators, and Hearing Officers141840Calculations/ValuesFormulas/Answers Administrative Services Managers96180Mean Adult Basic and Secondary Education and Literacy Teachers and Instructors63940Standard Deviation Advertising and Promotions Managers105130n Advertising Sales Agents51740 Aerospace Engineering and Operations Technicians56140 Aerospace Engineers115220 Agents and Business Managers of Artists, Performers, and Athletes74580 Agricultural and Food Science Technicians42060 Agricultural Inspectors54140 Agricultural Sciences Teachers, Postsecondary87390 Air Traffic Controllers114906 Aircraft Cargo Handling Supervisors50380 Aircraft Structure, Surfaces, Rigging, and Systems Assemblers51410 Airfield Operations Specialists59800 Airline Pilots, Copilots, and Flight Engineers115670 Anthropologists and Archeologists55720 Appraisers and Assessors of Real Estate52870 Arbitrators, Mediators, and Conciliators86430 Architects, Except Landscape and Naval81000 Architectural and Civil Drafters62210 Architecture and Engineering Occupations73850 Architecture Teachers, Postsecondary73870 Archivists76749 Art Directors98924 Art, Drama, and Music Teachers, Postsecondary78700 Athletic Trainers45440 Atmospheric and Space Scientists93900 Atmospheric, Earth, Marine, and Space Sciences Teachers, Postsecondary96590 Audiologists97230 Avionics Technicians47320 Biomedical Engineers99000 Boilermakers76310 Broadcast News Analysts71040 Brokerage Clerks57260 Budget Analysts75940 Business and Financial Operations Occupations64880 Business Operations Specialists, All Other67980 Business Teachers, Postsecondary109800 Buyers and Purchasing Agents, Farm Products62290 Camera and Photographic Equipment Repairers32280 Captains, Mates, and Pilots of Water Vessels63890 Cardiovascular Technologists and Technicians59630 Career/Technical Education Teachers, Middle School69050 Career/Technical Education Teachers, Secondary School63430 Cargo and Freight Agents40910 Cartographers and Photogrammetrists72120 Chefs and Head Cooks47660 Chemical Engineers87200 Chemical Equipment Operators and Tenders45460 Chemical Plant and System Operators54920 Chemical Technicians50360 Chemistry Teachers, Postsecondary96330 Chemists59630 Child, Family, and School Social Workers58140 Chiropractors86820 Civil Engineers91430 Claims Adjusters, Examiners, and Investigators66030 Clinical, Counseling, and School Psychologists76150 Coil Winders, Tapers, and Finishers36610 Commercial and Industrial Designers66710 Commercial Pilots130059 Communications Equipment Operators, All Other43160 Communications Teachers, Postsecondary85310 Community and Social Service Occupations43790 Community Health Workers37190 Compensation and Benefits Managers121570 Compensation, Benefits, and Job Analysis Specialists67210 Compliance Officers67637 Computer and Information Research Scientists121310 Computer and Information Systems Managers137140 Computer and Mathematical Occupations81640 Computer Hardware Engineers95500 Computer Network Architects112050 Computer Network Support Specialists70940 Computer Occupations, All Other92960 Computer Programmers84280 Computer Science Teachers, Postsecondary89290 Computer Systems Analysts90600 Computer User Support Specialists53680 Conservation Scientists67540 Construction and Building Inspectors64150 Construction Managers99150 Continuous Mining Machine Operators55330 Control and Valve Installers and Repairers, Except Mechanical Door64960 Conveyor Operators and Tenders35110 Cost Estimators69480 Crane and Tower Operators53980 Credit Analysts72870 Credit Counselors46720 Criminal Justice and Law Enforcement Teachers, Postsecondary66980 Curators66230 Database Administrators91730 Dental Hygienists71930 Derrick Operators, Oil and Gas38120 Detectives and Criminal Investigators90890 Diagnostic Medical Sonographers74340 Dietitians and Nutritionists60370 Directors, Religious Activities and Education43690 Drafters, All Other51790 Economics Teachers, Postsecondary137920 Economists106280 Editors58820 Education Administrators, All Other79960 Education Administrators, Elementary and Secondary School103570 Education Administrators, Postsecondary110110 Education Administrators, Preschool and Childcare Center/Program81590 Education Teachers, Postsecondary65020 Education, Training, and Library Occupations47920 Educational, Guidance, School, and Vocational Counselors56550 Electric Motor, Power Tool, and Related Repairers63800 Electrical and Electronics Drafters69010 Electrical and Electronics Engineering Technicians68060 Electrical and Electronics Installers and Repairers, Transportation Equipment54060 Electrical and Electronics Repairers, Commercial and Industrial Equipment55970 Electrical and Electronics Repairers, Powerhouse, Substation, and Relay81590 Electrical Engineers91870 Electrical Power-Line Installers and Repairers67430 Electricians60590 Electro-Mechanical Technicians54700 Electronics Engineers, Except Computer100610 Elementary School Teachers, Except Special Education62620 Elevator Installers and Repairers88340 Embalmers48770 Emergency Management Directors79270 Engineering Technicians, Except Drafters, All Other63250 English Language and Literature Teachers, Postsecondary81700 Environmental Engineering Technicians56810 Environmental Engineers84870 Environmental Science and Protection Technicians, Including Health45090 Environmental Science Teachers, Postsecondary92530 Environmental Scientists and Specialists, Including Health84320 Epidemiologists85620 Executive Secretaries and Executive Administrative Assistants55770 Exercise Physiologists54300 Explosives Workers, Ordnance Handling Experts, and Blasters62910 Extruding, Forming, Pressing, and Compacting Machine Setters, Operators, and Tenders38680 Farm and Home Management Advisors38940 Film and Video Editors62280 Financial Analysts85660 Financial Clerks, All Other44080 Financial Examiners99800 Financial Managers134370 Financial Specialists, All Other87690 Fire Inspectors and Investigators58590 Firefighters49620 First-Line Supervisors of Construction Trades and Extraction Workers82160 First-Line Supervisors of Correctional Officers84290 First-Line Supervisors of Farming, Fishing, and Forestry Workers42540 First-Line Supervisors of Fire Fighting and Prevention Workers91930 First-Line Supervisors of Helpers, Laborers, and Material Movers, Hand49590 First-Line Supervisors of Landscaping, Lawn Service, and Groundskeeping Workers54280 First-Line Supervisors of Mechanics, Installers, and Repairers66430 First-Line Supervisors of Non-Retail Sales Workers72920 First-Line Supervisors of Office and Administrative Support Workers58120 First-Line Supervisors of Police and Detectives101240 First-Line Supervisors of Production and Operating Workers60990 First-Line Supervisors of Protective Service Workers, All Other46280 First-Line Supervisors of Transportation and Material-Moving Machine and Vehicle Operators58250 Fish and Game Wardens75430 Food Service Managers51340 Foreign Language and Literature Teachers, Postsecondary73350 Forensic Science Technicians79630 Forest and Conservation Technicians46640 Foresters65970 Forestry and Conservation Science Teachers, Postsecondary90080 Fundraisers57720 Funeral Service Managers82590 Gaming Supervisors32220 Gas Compressor and Gas Pumping Station Operators62720 Gas Plant Operators70130 General and Operations Managers124190 Geography Teachers, Postsecondary82530 Geological and Petroleum Technicians39180 Geoscientists, Except Hydrologists and Geographers70730 Health and Safety Engineers, Except Mining Safety Engineers and Inspectors84880 Health Diagnosing and Treating Practitioners, All Other67650 Health Educators41781 Health Specialties Teachers, Postsecondary136670 Health Technologists and Technicians, All Other45940 Healthcare Practitioners and Technical Occupations67470 Healthcare Social Workers53600 Hearing Aid Specialists46970 Historians84337 History Teachers, Postsecondary88590 Hoist and Winch Operators80,660 Home Economics Teachers, Postsecondary74490 Human Resources Managers112430 Human Resources Specialists61460 Industrial Engineering Technicians55460 Industrial Engineers82720 Industrial Machinery Mechanics55930 Industrial Production Managers100480 Information and Record Clerks, All Other45700 Information Security Analysts97360 Installation, Maintenance, and Repair Occupations45990 Instructional Coordinators66810 Insurance Appraisers, Auto Damage70380 Insurance Sales Agents66080 Insurance Underwriters76990 Interior Designers62010 Judges, Magistrate Judges, and Magistrates58140 Kindergarten Teachers, Except Special Education55850 Labor Relations Specialists51870 Landscape Architects68960 Lawyers140920 Layout Workers, Metal and Plastic42830 Legal Occupations82900 Legal Support Workers, All Other59800 Librarians56320 Library Science Teachers, Postsecondary78830 Life Scientists, All Other82630 Life, Physical, and Social Science Occupations62840 Loading Machine Operators, Underground Mining41270 Loan Officers63040 Locomotive Engineers71960 Logging Workers, All Other41940 Logisticians74600 Magnetic Resonance Imaging Technologists70580 Management Analysts92200 Managers, All Other88600 Marine Engineers and Naval Architects82410 Market Research Analysts and Marketing Specialists62380 Marketing Managers122260 Marriage and Family Therapists55600 Materials Engineers91510 Mathematical Science Teachers, Postsecondary78880 Mechanical Drafters58540 Mechanical Engineering Technicians60220 Mechanical Engineers92040 Media and Communication Equipment Workers, All Other76540 Medical and Clinical Laboratory Technologists65770 Medical and Health Services Managers113030 Medical Equipment Repairers58310 Meeting, Convention, and Event Planners52370 Mental Health Counselors46580 Metal-Refining Furnace Operators and Tenders44990 Middle School Teachers, Except Special and Career/Technical Education66630 Millwrights58660 Mine Cutting and Channeling Machine Operators46250 Mine Shuttle Car Operators56930 Mining and Geological Engineers, Including Mining Safety Engineers93920 Mining Machine Operators, All Other69160 Mixing and Blending Machine Setters, Operators, and Tenders41970 Mobile Heavy Equipment Mechanics, Except Engines58950 Model Makers, Metal and Plastic57100 Morticians, Undertakers, and Funeral Directors69800 Multimedia Artists and Animators59890 Music Directors and Composers46260 Natural Sciences Managers113620 Network and Computer Systems Administrators87700 Nuclear Engineers121650 Nuclear Medicine Technologists79440 Nuclear Technicians88770 Nurse Practitioners101960 Nursing Instructors and Teachers, Postsecondary72450 Occupational Health and Safety Specialists75610 Occupational Health and Safety Technicians61740 Occupational Therapists82290 Occupational Therapy Assistants61860 Operations Research Analysts90310 Optometrists111790 Orthotists and Prosthetists82380 Painters, Transportation Equipment45230 Paper Goods Machine Setters, Operators, and Tenders37110 Paralegals and Legal Assistants56990 Patternmakers, Metal and Plastic56260 Personal Financial Advisors121750 Petroleum Pump System Operators, Refinery Operators, and Gaugers66550 Pharmacists120280 Philosophy and Religion Teachers, Postsecondary78010 Physical Therapist Assistants58720 Physical Therapists90040 Physician Assistants104730 Physicists118520 Physics Teachers, Postsecondary89040 Plant and System Operators, All Other56830 Plumbers, Pipefitters, and Steamfitters77570 Podiatrists192180 Police and Sheriff's Patrol Officers73870 Political Science Teachers, Postsecondary90250 Postal Service Clerks49310 Postal Service Mail Carriers50160 Postal Service Mail Sorters, Processors, and Processing Machine Operators49820 Postmasters and Mail Superintendents75620 Power Distributors and Dispatchers84830 Power Plant Operators79100 Precision Instrument and Equipment Repairers, All Other64170 Private Detectives and Investigators58290 Probation Officers and Correctional Treatment Specialists64300 Producers and Directors75970 Production, Planning, and Expediting Clerks48390 Property, Real Estate, and Community Association Managers66710 Psychologists, All Other79010 Psychology Teachers, Postsecondary89680 Public Relations and Fundraising Managers115180 Public Relations Specialists63620 Pump Operators, Except Wellhead Pumpers51520 Purchasing Agents, Except Wholesale, Retail, and Farm Products61760 Purchasing Managers111380 Radiation Therapists84640 Radio, Cellular, and Tower Equipment Installers and Repairers49240 Radiologic Technologists63420 Rail Yard Engineers, Dinkey Operators, and Hostlers54790 Railroad Conductors and Yardmasters65740 Rail-Track Laying and Maintenance Equipment Operators54600 Real Estate Brokers86260 Real Estate Sales Agents59010 Recreation and Fitness Studies Teachers, Postsecondary60080 Recreational Vehicle Service Technicians34450 Refractory Materials Repairers, Except Brickmasons49210 Registered Nurses71730 Reinforcing Iron and Rebar Workers86290 Respiratory Therapists56910 Rolling Machine Setters, Operators, and Tenders, Metal and Plastic38060 Roof Bolters, Mining58900 Rotary Drill Operators, Oil and Gas49720 Sales Engineers98760 Sales Managers75432 Sales Representatives, Services, All Other61930 Sales Representatives, Wholesale and Manufacturing, Except Technical and Scientific Products69900 Sales Representatives, Wholesale and Manufacturing, Technical and Scientific Products81950 Secondary School Teachers, Except Special and Career/Technical Education68380 Securities, Commodities, and Financial Services Sales Agents86070 Service Unit Operators, Oil, Gas, and Mining42200 Set and Exhibit Designers54620 Ship Engineers57066 Signal and Track Switch Repairers37720 Social and Community Service Managers63870 Social Scientists and Related Workers, All Other79960 Social Work Teachers, Postsecondary54580 Social Workers, All Other65890 Sociology Teachers, Postsecondary87710 Software Developers, Applications96110 Software Developers, Systems Software106700 Soil and Plant Scientists57080 Sound Engineering Technicians58660 Special Education Teachers, All Other59400 Special Education Teachers, Kindergarten and Elementary School65430 Special Education Teachers, Middle School62160 Special Education Teachers, Secondary School68560 Speech-Language Pathologists78760 Stationary Engineers and Boiler Operators79090 Statisticians88190 Surveyors60215 Tank Car, Truck, and Ship Loaders45470 Tax Examiners and Collectors, and Revenue Agents79850 Technical Writers67410 Telecommunications Equipment Installers and Repairers, Except Line Installers57580 Tire Builders42500 Tool and Die Makers54680 Training and Development Managers101500 Training and Development Specialists59910 Transportation Inspectors86790 Transportation, Storage, and Distribution Managers92220 Urban and Regional Planners79510 Veterinarians93830 Water and Wastewater Treatment Plant and System Operators54560 Web Developers56820 Wholesale and Retail Buyers, Except Farm Products55080 Writers and Authors53050 Zoologists and Wildlife Biologists62420 Question 1 1. Describe the 8 steps in the process for hypothesis testing. Explain the decision criteria for rejecting the null hypothesis for both the p-value method and the critical value method. Question 2 Calculations/ValuesFormulas/Answers Mean (x-bar) Standard Deviation n mu Test Statistic Critical Value P-value 2a. Write the null and alternative hypotheses symbolically and identify which hypothesis is the claim. Then identify if the test is left-tailed, right-tailed, or two-tailed and explain why. 2b. Identify and explain which test statistic you will use for your hypothesis test: z or t? Find the value of the test statistic. Provide your calculations in the cells designated to the right. Explain your answers below. 2c. What is the critical value? Describe the rejection region of this hypothesis test. Provide your calculations in the cells designated to the right. Explain your answers below. 2d. Using the critical value approach, should you reject the null hypothesis or not reject the null hypothesis? Explain. After making your decision, restate it in non-technical terms and make a conclusion about the original claim. 2e. Calculate the p-value for this hypothesis test, and state the hypothesis conclusion based on the p-value. Does this match your results from the critical value method? Provide your calculations in the cells designated to the right. Explain your answers below. Question 3 Calculations/ValuesFormulas/Answers Mean (x-bar) Standard Deviation n mu Test Statistic Critical Value P-value 3a. Write the null and alternative hypotheses symbolically and identify which hypothesis is the claim. Then identify if the test is