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Part A. Read each of the following scenarios below. Identify what statistical test
is to be used and justify. Explain briefly.
1. A financial analyst wants to compare the hourly pay rates of workers in five big
cities. He has randomly chosen 136 workers in each city and recorded their hourly
rates. The data is assumed to be normally distributed.
ONE-WAY ANOVA
B) VARIABLES
Dependent Variable: Verbal Ability test scores
Independent Variable: Verbal Ability before and after the 5 month
program
D) CONCLUSION
A paired-samples t-test was used to determine whether there was a
statistically significant mean difference between the verbal ability test
scores of the participants before and after the 5-month program. As
shown, participants verbal ability test score after the 5-month program
(594.30 ± 66.22) is relatively higher than their verbal ability score before the
program (526.37 ± 131.59), a statistically significant increase of 67.932
(95%CI, 36.644 to 99.219), t(43)=4.379, p<.0005, d=0.66.
2. A group of individuals were grouped according to their job categories: sales,
education and health care. Their previous experience (in months) was compared.
Is there a significant difference in the mean number of months of previous
experience between job categories? Level of significance at .05.
B) VARIABLES
Dependent Variable: Number of months of previous experience
Independent Variable: Job Categories (Sales, Education, Health Care)
D) CONCLUSION
One way ANOVA shows that there is a significant difference in the
mean number of months of previous experience between job categories:
sales (87.66 ± 93.79), education (298.11 ± 101.43), and health care (101.26 ±
86.76), F(2, 471) = 64.299, p=.000.
Furthermore, Tukey post hoc analysis revealed that the increase from
education and sales was statistically significant (p=.000), as well as the
increase from education and health care (p=.000) were statistically
significant. No other group differences were observed.