Question

 

Bachelor's Degree	High School Diploma	No High School Diploma
22.50	12.68	11.21
19.57	11.23	8.54
24.13	19.53	12.52
27.23	9.85	9.06
27.00	15.76	14.21
28.60	12.31	13.40
16.85	12.27	11.46
22.70	8.57	11.22
26.69	11.06	9.56
20.14	11.47	9.43
21.33	13.38	10.98
18.33	9.85	10.41
17.86	12.35	11.73
20.47	10.68	8.28
21.08	10.70	8.59
17.05	11.54	13.30
21.70	13.55	7.91
22.19	17.80	12.28
23.80	15.70	10.72
22.30	17.50	15.97
22.42	6.50	10.58
22.29	8.98	9.59
27.43	12.14	10.92
23.14	8.83	9.70
22.84	13.02	7.64
21.86	8.90	10.39
29.32	13.80	4.62
26.00	21.67	13.04
30.53	8.74	6.29
21.44	7.47	10.27

Statistical Methods of Business I – Case Study

Texas is home to more than one million undocumented immigrants, and most of them are stuck in low-paying jobs. Meanwhile, the state also suffers from a lack of skilled workers. The Texas Workforce Commission estimates that 133,000 jobs are currently unfilled, many because employers cannot find qualified applicants (The Boston Globe, September 29, 2011). Texas was the first state to pass a law that allows children of undocumented immigrants to pay in-state college tuition rates if they have lived in Texas for three years and plan to become permanent residents. The law passed easily back in 2001 because most legislators believed that producing college graduates and keeping them in Texas benefits the business community. In addition, since college graduates earn more money, they also provide the state with more revenue.

Chuck Norris, who sits on the Board of Directors for the Texas Workforce Commission suggests the board should hire your consulting firm, Stat Solutions, to estimate the mean hourly wage of workers with various levels of education. You accept the job and a sample is collected of the hourly wages of 30 Texas workers with a bachelor’s degree or higher, 30 Texas workers with only a high school diploma, and 30 Texas workers who did not finish high school.

Chuck wants you to provide a full report for him to present at the next meeting of the Texas Workforce Commission Board of Directors which occurs in 10 days.

Requirements and associated point values:

Part 1 – Calculate and use descriptive statistics to compare hourly wages for each of the education levels. Be sure to include the mean, standard deviation and margin of error with 95% confidence for each of the 3 levels (9 calculations). These calculations range in value from 3-4 points each for a total of 33 points. Note: See page 293 for the margin of error formula.

 

Part 2 – Construct and interpret 95% confidence intervals for the mean hourly wage at each education level. There should be an upper and lower number for each of the 3 levels. The end result should be 6 numbers which are valued at 3 points each for a total of 18 points.

Answer 1