Income by Age. The U.S. Census Bureau collects information on the incomes of employed persons and publishes the results in Historical Income Tables. Independent simple random samples of 100cm- ployed persons in each of four age groups gave the data on annual income, in thousands of dollars, presented on the WeissStats site.

Short Answer

Expert verified

a). The standard deviations for the samples and the values are calculated,

Age 25-34:25.73

Age 35-44:28.47

Age 45-54:30.62

Age 55-64:25.80

b). Residual vs Fits

c). The ANOVA test is reasonable.

d). The ANOVA test is not reasonable.

e). The ANOVA test is not reasonable.

Step by step solution

01

Part (a) Step 1: Given Information

The U.S. Census Bureau collects information on the incomes of employed persons and publishes the results in Historical Income Tables.

02

Part (a) Step 2: Explanation

The MINITAB would be used to generate the normal probability plots and sample standard deviations.

Age 25-34 (probability plot)

The MINITAB process includes the following steps:

- Select the Graph tab first, then Probability plot.

- In the second step, select Single and then OK.

- In the third step, select Graph variables and enter columns 25-34, then click Ok.

Minitab's output would be as follows if you followed the procedures above:

03

Part (a) Step 3: Explanation

Age 35-44: Probability Graph

The MINITAB output is as follows: Only at step three should you enter columns 35-44in the graph variables, then click the Ok tab.

Age 45-54: Probability Graph

The MINITAB output is as follows: Only at step 3should you enter columns 45-54in the graph variables, then click the Ok tab.

04

Part (a) Step 4: Explanation

Age 55-64: Probability Graph

The MINITAB output is as follows: Only at step 3should you enter column 55-64in the graph variables, then click the Ok tab.

05

Part (b) Step 1: Given Information

The U.S. Census Bureau collects information on the incomes of employed persons and publishes the results in Historical Income Tables.

06

Part (b) Step 2: Explanation

The next step is to create a residual plot for each of the probability plots:

To obtain residual probability plots, follow the procedures below:

The first step is to decide whether to use Stat, Anova, or One-way. After that, enter the Income column.

The next step is to open the factor and then enter the Age column before clicking OK.

The following is the output of the Normal Probability plot:

Residual as an output (response is Income).

The output for Residual vs fits

07

Part (c) Step 1: Given Information

The U.S. Census Bureau collects information on the incomes of employed persons and publishes the results in Historical Income Tables.

08

Part (c) Step 2: Explanation

The samples to be taken are supposed to be independent of one another, and the population is assumed to be normal. The standard deviations of the population must be the same as well.

Calculate the highest to lowest standard deviation ratio as follows:

30.6225.73=1.15

The axioms of the standard deviation are violated if this ratio is greater than 2. The assumptions have been met in this case.

The normal probability plot also yields a relatively straight line, indicating that the assumptions are met.

As a result, the ANOVA test is valid.

09

Part (d) Step 1: Given Information

The U.S. Census Bureau collects information on the incomes of employed persons and publishes the results in Historical Income Tables.

10

Part (d) Step 2: Explanation

We didn't get a straight line in the probability graphs, indicating the data distribution isn't regularly distributed.

They don't have a linear relationship between them.

As a result, conventional population assumptions are not met.

On this dataset, the ANOVA test isn't appropriate.

11

Part (e) Step 1: Given Information

The U.S. Census Bureau collects information on the incomes of employed persons and publishes the results in Historical Income Tables.

12

Part (e) Step 2: Explanation

We didn't get a straight line in the probability graphs, indicating the data distribution isn't regularly distributed.

They don't have a linear relationship between them.

As a result, conventional population assumptions are not met.

On this dataset, the ANOVA test isn't appropriate.

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