How much is a college degree worth? The 2010 annual salaries in dollars for a random sample of females who are 25 years old and older given their years of education is shown below. Is there a linear relationship between educational attainment and annual salary? Years of Education 18 16 14 12 10 15 13 18 12 16 16 Annual Salary (in Dollars) 52,866 40,393 27,062 21,427 14,470 41,010 31,376 79,962 21,387 39,925 57,815 Hypothesis test needed
Inverse Normal Distribution
The method used for finding the corresponding z-critical value in a normal distribution using the known probability is said to be an inverse normal distribution. The inverse normal distribution is a continuous probability distribution with a family of two parameters.
Mean, Median, Mode
It is a descriptive summary of a data set. It can be defined by using some of the measures. The central tendencies do not provide information regarding individual data from the dataset. However, they give a summary of the data set. The central tendency or measure of central tendency is a central or typical value for a probability distribution.
Z-Scores
A z-score is a unit of measurement used in statistics to describe the position of a raw score in terms of its distance from the mean, measured with reference to standard deviation from the mean. Z-scores are useful in statistics because they allow comparison between two scores that belong to different normal distributions.
How much is a college degree worth? The 2010 annual salaries in dollars for a random sample of females who are 25 years old and older given their years of education is shown below. Is there a linear relationship between educational attainment and annual salary?
Years of Education 18 16 14 12 10 15 13 18 12 16 16
Annual Salary (in Dollars) 52,866 40,393 27,062 21,427 14,470 41,010 31,376 79,962 21,387 39,925 57,815
Hypothesis test needed
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