Steve and Sue, both being relatively short, have always felt they and their shorter than average friends were getting shorted in pay. They hire you to do some analysis. You divide the population into shorter than average (Shorts) and taller than average (Talls). (Probably don’t refer to your friends in these terms, this is only to help you quickly talk about the samples) Your Shorts sample of 10 people earns on average $22 per hour with a standard deviation of $5. The Talls sample of 12 shows an average earned $18 per hour with a standard deviation of $4. Set up a null hypothesis and an alternative hypothesis Using an alpha of .05 test your hypothesis. (If you get stuck write down what you know.) What did you determine based on your test? Refer to your null and alternative hypotheses. (If you are stuck on part b, make up a result and answer parts c and d based on the result. Make sure to explicitly state what result you are making up so I can follow your logic. And of course, please never actually make up results with real data) Based on your result which type of error may you have made. Type 1 or Type 2? Explain what that error would mean in the context of your results. What else might be driving some of the differences in pay between the two groups? Are we sure being short is the reason the Shorts earn less?

MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

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Question 4)

Steve and Sue, both being relatively short, have always felt they and their shorter than average friends were getting shorted in pay. They hire you to do some analysis.

You divide the population into shorter than average (Shorts) and taller than average (Talls). (Probably don’t refer to your friends in these terms, this is only to help you quickly talk about the samples)

Your Shorts sample of 10 people earns on average $22 per hour with a standard deviation of $5. The Talls sample of 12 shows an average earned $18 per hour with a standard deviation of $4.

Set up a null hypothesis and an alternative hypothesis

Using an alpha of .05 test your hypothesis. (If you get stuck write down what you know.)

What did you determine based on your test? Refer to your null and alternative hypotheses.

(If you are stuck on part b, make up a result and answer parts c and d based on the result. Make sure to explicitly state what result you are making up so I can follow your logic. And of course, please never actually make up results with real data)

Based on your result which type of error may you have made. Type 1 or Type 2? Explain what that error would mean in the context of your results.

What else might be driving some of the differences in pay between the two groups? Are we sure being short is the reason the Shorts earn less?

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