Question

The Tampa Bay (Florida) Area Chamber of Commerce wanted to know whether the mean weekly salary of nurses was larger than that of school teachers. To investigate, they collected the following information on the amounts earned last week by a sample of school teachers and nurses. School Teachers ($) 1,095 1,076 1,077 1,125 1,034 1,059 1,052 1,070 1,079 1,080 Nurses ($) 1,091 1,140 1,071 1,021 1,100 1,109 1,075 1,079 Is it reasonable to conclude that the mean weekly salary of nurses is higher? Use the 0.01 significance level. Hint: For the calculations, assume the nurses as the first sample.

Answer 1

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t-Test: Two-Sample Assuming Equal Variances Variable 1 Variable 2 1085.75 1074.7 1183.643 604.0111 10 Mean Variance Observations Pooled Variance Hypothesized Mean Difference df t Stat P(T< t) one-tail t Critical one-tail P(T< t) two-tail t Critical two-tail 857.6 0 16 0.795479 0.218989 1.745884 0.437978 2.119905

P( T <=t ) = 0.2189 ---- This is for left tail but we have right tail test so need subtract 1.

p( T > t) = 1 - 0.2189 = 0.7810

Here P value greter than 0.05 so we fail to reject Ho.

Conclusion : There is sufficient evidence to say that, mean weekly salary of nurses is higher.