The annual earnings of 19 people with a high school diploma and 16 people with an associates

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The annual earnings of 19 people with a high school diploma and 16 people with an associate’s degree are shown below. Can you conclude that there is a difference in the mean annual earnings based on level of education? Use α = 0.01. Assume the populations are normally distributed and the population variances are not equal.

Sample Statistics for Annual Earnings

a. Identify the claim and state H0 and Ha.

b. Identify the level of significance α and the degrees of freedom.

c. Find the critical values and identify the rejection regions.

d. Find the standardized test statistic t. Sketch a graph.

e. Decide whether to reject the null hypothesis.

f. Interpret the decision in the context of the original claim.

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