The Following Data Shows Annual Income, in Thousands of Dollars

question 91

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:

Consumption Expenditures

Spending by households on goods and services, with the exception of purchases of new housing.

Effective Marginal Tax Rate

The rate at which an additional dollar of income gets taxed, taking into account the impact of all applicable tax brackets.

Income

Money received on a regular basis from work, investments, business ventures, or other sources.

Medicaid Benefits

Medicaid Benefits are health care program benefits provided by the state and federal government to eligible low-income adults, children, pregnant women, elderly adults, and people with disabilities.