Non Parametric Testing

Education and Income Non-parametric Testing

This assignment is a continuation of the previous assignment from which we are identifying parametric and non-parametric testing. In this phase of this assignment we will keep the same hypothesis previously identified in the parametric testing we will perform the testing requirements identified using the non-parametric procedures. Once the data in processed and analyzed using the non-parametric five- step hypothesis test, the information will be posted along with any additional differences from the previous work using the parametric procedures. According to Applied Statistics, the advantages to non-parametric testing includes that, among other reasons, it’s “generally more powerful than parametric test when normality cannot be assumed” (Doane, 2007).

Hypothesis

The purpose of this research is to determine if the null hypothesis population has mean annual income, which is equal to, or more than $30,833.46. The null hypothesis population in this particular study is identified on the data includes those who have 12 years of education and less. In mathematic terms, the hypothesis is identified as H0: π ≤ $30,833.46. The second hypothesis indentifying this population group indentifies those individuals with more than 12 years of education. This group would include those who have at least some college or technical training. It is the belief of this group that the population of those with more than 12 years of education mean income is equal to or more than the null hypothesis. If the hypothesis were written out in mathematical formula, then it would indicate that H1: π > $30,833.36.

Five Step-Hypothesis Testing

Step 1. State the hypothesis

Null Hypothesis is that those with more than 12 years of education earn less than those with 12 years or less of education.

H0: μ ≤ $30,833.36

Alternative hypothesis is that those with more than 12 years of education earn more than those with 12 years or less of education....