Question

Accounting Major

The data in the enclosed spreadsheet comes from the Texas Higher Education Coordinating Board and the Texas Department of Labor. It represents the total wages earned by major, during the 4^th quarter after graduation. http://www.txhighereddata.org/reports/performance/ctcasalf/gainful.cfm

What was the mean 4^th quarter wages for 2016 grads in your major:_____________

What was the median 4^th quarter wages for 2016 grads in your major:_____________

What percent of 2016 graduates in your major were employed in the 4^th quarter?_______

What are some limitations to the THECB wage report that might impact interpretation of wage data? Should you use the mean or median to provide the best estimate of annual wages for graduates in this major? Explain your answer:

Based on #4, calculate an estimation of annual wage for this major, one year out from graduation:_______________________

Go to O-NET (https://www.onetonline.org/). This site is run by the US Department of Labor. The Department of Labor uses actual wage date to create an overview of expected wages and job availability. Search for an occupation related to your major under “Occupation Quick Search”.

Occupation Researched:__________________

What are related occupations:___________________________________________

Percentage of respondents working in field with a Bachelor’s degree:_____________

Percentage of respondents working in field with a Master’s degree:_____________

What is the median wage in 2017 (nationally)_________________

What is the median wage in 2017 (Texas only) ___________________

What is the projected job growth (2016-2026) nationally for occupation?___________________

What is the projected job growth (2016-2026) in Texas for this occupation? _______________

One the State Wage Data tab, select the “Employment Concentration Tab”. Where are people in this occupation most concentrated?________________

How does the median annual wage in Texas compare to the THECB wage calculated in #5?

What factors might account for the differences in wages between the O-NET Texas data and the THECB data?

Based on these data, what is your best estimate of your wages the first year after graduation? Justify your answer:

How has this research affirmed or changed your career plans?

Answer 1

I.

From the data set,

The mean 4th quarter wages for 2016 in Accounting major is $6,142

The median 4th quarter wages for 2016 in Accounting major is $4,167

The percentage of 2016 graduates in Accounting major were employed in the 4th quarter is 83%

The limitations of THCEB report that might impact the interpretation of wage data are

i) There is no data for total for enrolled in 4th QTR.

ii) The sample size is only six which is not enough for statistical interpretation as it would not be a representative of the population.

The mean wage is higher than the median wage which tells that the data is strongly positively skewed. For skewed data, mean will be inappropriate and so the median will be the appropriate measure to use as an estimate for the annual wage for the accounting major.

Based on #4, the estimate of annual wage for the accounting major, one year out from graduation is $4,167.

II.

Occupation researched: Accountant

Related occupations: Auditing, Credit analysts, Financial analyst, Insurance underwriters etc.

Percentage of respondents working in this field with a Bachelor's degree is 42%.

Percentage of respondents working in this field with a Masters degree is NOT AVAILABLE.

The median wage in 2017 (nationally) is $69,350 annual

The median wage in 2017 (Texas only) is $72,980 annual

The projected job growth (2016 - 2026) nationally for occupation is 10% to 14%.

The projected job growth (2016 - 2026) in Texas for this occupation is 10%.

People in the Accounting occupation is most concentrated in the state of Texas is in Dallas-Plano-Irving, TX - Metropolitan Division

The median annual wage in Texas is very much higher than the median wage of the THECB calculated in #5.

The factors that might account for the differences in wages between the O-NET texas data and the THECB data are

i) Experience

ii) Socio-Economic status

iii) Cost of living

iv) Firms employed this profession

The best estimate of the wages of the first year after graduation would be the same as described before $4167 as the Texas data cannot be used for estimation.

This research affirmed the career plans as the national average is promising.