In recent times it has been suggested that university graduates can be divided i
ID: 3339575 • Letter: I
Question
In recent times it has been suggested that university graduates can be divided into two groups, those who graduated from a business degree and those who did not. Suppose you are working for the Government and have been asked to determine whether this is the case. Of particular importance is the income of a graduate in their first year of employment. It is believed that higher incomes are more likely to be experienced by students who are not business graduates. Below is a statistical summary of a sample of incomes of non-business and business graduates (measured in $000s)
Excel Descriptive Statistics Table
Statistic
Non-Business
Business
Mean
81
69
Standard Error
1
3
Median
82
60
Mode
82
59
Standard Deviation
5
15
Sample Variance
29
236
Kurtosis
-1
-1
Skewness
0
0
Range
17
54
Minimum
72
31
Maximum
89
85
Sum
2420
1771
Count
30
30
1st Quartile
76
51
3rd Quartile
84
71
a. Discuss the distributions of Business Graduates in contrast to Non-Business Graduates.
b. It is suggested that the results may be influenced by extreme values. Using the appropriate measure of central tendency (location) which group typically earns higher incomes?
Excel Descriptive Statistics Table
Statistic
Non-Business
Business
Mean
81
69
Standard Error
1
3
Median
82
60
Mode
82
59
Standard Deviation
5
15
Sample Variance
29
236
Kurtosis
-1
-1
Skewness
0
0
Range
17
54
Minimum
72
31
Maximum
89
85
Sum
2420
1771
Count
30
30
1st Quartile
76
51
3rd Quartile
84
71
Explanation / Answer
Solution - (a) Data for business graduates is likely to be more spread in comparison to that of non-business graduates. Comparing variance or standard error we deduce that incomes of business graduates are more variable. Both distributions have symmetrical probability density function with non business graduates having having higher mean value.
(b) Non business graduates typically earn higher due to having higher mean values, higher median and lower standard deviation.
TY!
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.