Question
The dataset income.csv contains with annual incomes in 2005 of the subset of National Longitudinal Survey of Youth (NLSY79) subjects who had paying jobs in
The dataset "income.csv" contains with annual incomes in 2005 of the subset of National Longitudinal Survey of Youth (NLSY79) subjects who had paying jobs in 2005 and who had completed either 12 or 16 years of education by the time of their interview in 2006. All the subjects in this sample were between 41 and 49 years of age in 2006.
a. Prepare a side-by-side box plot of both groups (use the untransformed data). Report the Mean and Median for each group.
b. Log-transform your data, prepare a side-by-side box plot of both groups and report the mean and the median of the variable income.
c. Explain if the transformation is necessary. You can support your answer using a normality test.
d. Perform the appropriate test(s) of the difference on the amount by which the population distribution of incomes for those with 16 years of education exceeds the distribution for those with 12 years of education. Make sure to add the hypotheses you are testing and the R-output.
e. What is your conclusion? If necessary, transform to the original data ($dollars) when making this conclusion.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started