The Following Data Shows Annual Income, in Thousands of Dollars

question 18

Essay

The following data shows annual income, in thousands of dollars, categorized according to the two factors of gender and level of education. Assume that incomes are not affected by an interaction between gender and level of education, and test the null hypothesis that level of education has no effect on income. Use a 0.05 significance level. $$\begin{array} { l c c } & \text { Female } & \text { Male } \\\text { High school } & 23,27,24,26 & 25,26,22,24 \\\text { College } & 28,36,31,33 & 35,32,39,28 \\\text { Advanced degree } & 41,38,43,49 & 35,50,47,44\end{array}$$

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Definitions:

Capital Intensity Ratio

A metric that measures the amount of capital needed per unit of output, indicating how capital-intensive a business operation is.

Operating Capacity

The maximum output that an organization can produce with its current resources and constraints.

Dividend Payout Ratio

A financial metric that shows what portion of a company's earnings are distributed to shareholders in the form of dividends.

External Financing

Describes the funds a business acquires from sources outside the company, such as bank loans, venture capital, or issuing bonds and stocks to support operations or expansion.