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Unformatted text preview: 32. Consider a random sample of 100 households from a middle-class neighborhood that was the recent focus of an economic development study conducted by the local government. Specifically, for each of the 100 households, information was gathered on each of the following variables: family size, location of the household within the neighborhood, an indication of whether those surveyed owned or rented their home, gross annual income of the first household wage earner, gross annual income of the second household wage earner (if applicable), monthly home mortgage or rent payment, average monthly expenditure on utilities, and the total indebtedness (excluding the value of a home mortgage) of the household. The data are in the file P09_26.xlsx . Test for the existence of a significant difference between the mean indebtedness levels of the households in the first (i.e., SW) and second (i.e., NW) sectors of this community. Perform similar hypothesis tests for the differences between the mean indebtedness levels of households from all other pairs of locations (i.e., first and third, first and fourth, second and third, second and fourth, and third and fourth). Summarize your findings. Procedure for Testing the Difference in Means of Two Samples Using Microsoft Excel. Three different tests are proposed for conducting Two Sample Test for Means: 1. Two Sample t Test for Means assuming equal variance. 2. Two Sample t Test for Means assuming unequal variance. 3. Two Sample Z Test for Means. In the present situation, since nothing is specially specified about the test to be conducted, we are conducting the two Sample t test for means assuming equal variance. Similar procedure can be adopted for others also. Procedure. 1. Enter data in an excel sheet giving variable names in the first row (See Sheet Data Arranged in the attached Excel file)....
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This note was uploaded on 08/04/2011 for the course ECN 601 taught by Professor Professor during the Spring '10 term at Grand Canyon.
- Spring '10