Suppose the American Association of Retired Persons

(AARP) would like to test if a difference exists in the average 401(k) balance between people in different age groups.

A random sample of individuals in the 50–59, 60–69, and 70 or older was selected and their 401(k) balance was recorded.

These 401(k) balances, in thousands of dollars, can be found in the Excel file AARP.xlsx.

a. Using a = 0.05, test to determine if a difference exists in the average 401(k) balance between these three age groups.

b. If appropriate, perform a multiple comparison test to determine which pairs are different using a = 0.05.

AppendixLO1