When Performing a One-Way ANOVA, Two of the Assumptions Required

question 19

Essay

When performing a one-way ANOVA, two of the assumptions required are that the populations be normally distributed and that the populations have equal standard deviations. What rule of thumb can be used to assess the equal-standard deviations assumption? What other method can be used to assess the normality and equal-standard deviations assumptions?

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Definitions:

Human Capital Investment

The expenditure of resources on education, training, and health, aiming to increase the productivity and earnings potential of individuals.

Worker Training

The process of providing employees with the skills and knowledge they need to perform their jobs effectively.

Real Wages

Wages that have been adjusted for inflation, reflecting the purchasing power of income.

Labor Supply

The total hours that workers are willing and able to work at a given wage rate, across all jobs available in the economy.