Question 503587: One reads that a business school graduate with an undergraduate degree earns more than a high school graduate with no additional education, and a person with a master’s degree or a doctorate earns even more. To test this, a random sample of 25 executives from companies with assets over $1 million was selected. Their incomes, classified by highest level of education, follow.
Income (in thousands)
High School
Undergraduate
Master's Degree
or less
degree
or higher
45
49
51
47
57
73
53
85
82
62
73
59
39
81
94
43
84
89
54
89
89
92
95
62
73
Here are the results of the one factor ANOVA. First, identify the null and alternative hypotheses for the test. Second, explain whether you reject or do not reject the null hypothesis. Does earning a degree matter? Explain.
One factor ANOVA
Mean
n
Std. Dev
HS
49.0
7
7.81
Group 1
HS or less
68.8
74.7
9
15.31
Group 2
Undergrad degree
68.8
78.3
9
15.58
Group 3
Master's degree or higher
68.8
25
18.32
Total
ANOVA table
Source
SS
df
MS
F
p-value
Treatment
3,872.00
2
1,936.000
10.18
.0007
Error
4,182.00
22
190.091
Total
8,054.00
24
Answer by xdragonfight(116)   (Show Source):
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